Bitcoin has finally achieved its near-term price target of $245. Throughout its rise and glind, the cryptocurrency has seen its momentum and strength readings edge significantly higher. Bitcoin is currently trading up 2.46 percent at $246.59.
But things are not all hunky-dory, as we will be analyzing below.
Bitcoin Chart Structure – As can be concluded from the daily BTC-USD price chart above, Bitcoin has taken out its previous top on the back of strong momentum. The critical 200-day SMA of $245.7423 has also been breached on this occasion. But sustaining above this level will be the key to more gains.
Fibonacci Retracements – The resistance posed by the 38.2% Fibonacci retracement of $243.84 has been pierced after a long gap. The next target in such a case would be the 50% Fibonacci retracement of $258.
Moving Average Convergence Divergence – The MACD has further strengthened to 2.2610 while the Signal Line has advanced to 0.6425. This leaves Histogram with a value of 1.6185.
Momentum – The current Momentum value of 14.1800 is the highest value in over a month. This reflects the strong bullish undertone for Bitcoin.
Money Flow Index – Bitcoin has certainly got even more overbought since yesterday as more gains are amassed. The value of MFI has touched 79.3184.
Relative Strength Index – The value of the RSI has shot up to a fresh 2-month high of 65.1523. This should also keep the bullish momentum going for longer.
Both the technical indicators and the price ticking rhythms are extremely positive for Bitcoin. The next price target for Bitcoin is $260, where it will meet its next set of resistances.
As the cryptocurrency is overbought from a near-term perspective, market participants can choose the safer option of waiting for a drop before initiating a long trade. Only risky traders should go long now.
Reduced volatility is anticipated throughout the upcoming sessions as well!