Bitcoin has fallen 2.09 percent during the weekend to reach an extremely important trading level. The price of Bitcoin now is $256.74, in close vicinity to what we had been discussing in the many previous analyses.
Now as Bitcoin has reached its target price of $256, with reference to the descending triangle pattern, it has improved the prospects of a short-term rebound. So, will there be any? Let us find out in the technical analysis of the daily BTC-USD price chart below.
Image: https://www.tradingview.com/x/rQPkh3Ev/
Bitcoin Chart Structure – The Bitcoin price has been slumping ever since it hit its peak of $318 this year. The price is now down roughly 20 percent from the peak value. But, it is currently at a very safe level where some buyers may look to go long in the cryptocurrency.
Fibonacci Retracements – Even though the wait stretched for a bit longer, the bears have pushed the price down to the crucial 61.8% Fibonacci retracement level of $256.80. Below this, the next support is near $240.
Moving Average Convergence Divergence – Even as the Histogram limits its losses, the MACD and the Signal Line have been pressured into further declines. The latest values of MACD, Signal Line and Histogram are -5.1757, -3.0763 and -2.0994 respectively.
Momentum – The Momentum indicator is relatively unchanged at -22.8900.
Money Flow Index – After a brief period of consolidation, the MFI can be seen fast approaching the dangerously oversold level of 10. It is presently at 13.6555.
Relative Strength Index – The RSI has weakened to 35.6838 as bulls lose ground.
Conclusion
I am of the opinion that the present level should invite inflows into Bitcoin which will help it sustain at the current level or even stage a comeback. The technical indications are also supportive of Bitcoin at this instant. However, if the bears decimate the bulls in the next couple of sessions, expect another 5-7 percent decline.
