Bitcoin has started this week on a very strong note as it raced higher to $247.53, on course to its highest closing in over a month. In the previous Bitcoin price technical analysis Mixed Technicals, we discussed how a couple of technical indicators were showing divergences from the other two. Well, currently, all of them are displaying much stronger readings.
Bitcoin is trading at $247.53, after hitting a monthly high of $248.50.
Even though Bitcoin is in a strong uptrend, let us review the latest technical indications to look for factors that may hamper the bullish mood.
Bitcoin Chart Structure – Apart from the positive developments stated above, Bitcoin has crossed the 200-day SMA of $245.4945 and is looking to build on this achievement. The cryptocurrency could, however, face trouble from the upper range of the BB which is presently at $249.8248.
Moving Average Convergence Divergence – In a display of strong momentum, MACD has surged to 3.1600, Signal Line has leapt to 2.0810 and Histogram is maintaining at 1.0789.
Momentum – The Momentum indicator has also advanced to 9.7600.
Money Flow Index – Apart from the BB consideration, another cause of worry is the overheated MFI value of 76.2512. Readings above 75 represent overbought conditions.
Relative Strength Index – The RSI indicator, the measure of the underlying strength, is strongly positive at 63.7037.
Bitcoin bulls are definitely making hay at this time as price continues to rise amid strong momentum. Above $250, the bulls should aim for the $260-275 band.
But, market participants should factor in the overbought conditions and the overhead BB resistance near $250 before making a long trade. In simple terms, practicing caution is advised.
Those sitting on profits should consider booking partially when the price reaches the above-mentioned resistance. Go long on dips by maintaining a strict stop-loss below $240.