Bitcoin is respecting the higher top, higher bottom structure and looks set to meet its target of $245. Currently trading up 0.75 percent at $238.66, Bitcoin is attracting the buyers on dips which solidify the uptrend.
As Bitcoin remained majorly quiet during the week, this weekend may bring a good price action.
From a technical perspective, some things have improved while some have taken a hit. Read on about them below.
Bitcoin Chart Structure – Bitcoin is once again aiming for its target as the fears of a trend breakdown have been alleviated. The 12-day SMA of $234.1150 is expected to act as the short-term support for the cryptocurrency.
Moving Average Convergence Divergence – MACD has finally entered the positive territory even though the initial number may look insignificant. The Histogram and MACD are both now in the positive region with respective values of 1.2876 and 0.3147 while Signal Line is languishing in the sub-zero region with a value of -0.9729.
Momentum – Surprisingly, the value of Momentum has dipped from 10.7500 to 8.2400 even during the price rise.
Money Flow Index – The value of the MFI has crossed the 60-mark and is now at 60.0545.
Relative Strength Index – The 14-day RSI has seen only a small jump to 55.3598.
Overall, the uptrend and the technical indications remain favorable for the buyers. This means that dips can be utilized to go long in the cryptocurrency – the same thing that was advised in the previous Bitcoin analysis That Boring Phase. Stoploss for the long trade is just south of $235.
If Bitcoin hits $245 this weekend, market participants should consider booking profits and adopt a wait and watch approach after that. Light short positions can be considered.
I do not see volatility jumping anytime soon. Follow the risk-reward strategy as per individual risk preferences.