I had said in the previous Bitcoin price technical analysis Can Bitcoin Survive This? with high optimism that the current price level may attract inflow to stem the decline. However, I have been proved wrong. The selling pressure is overwhelming the bulls, and a further increase may lead to a breakdown kind of situation in Bitcoin.
Bitcoin is currently available at $255.47, down 0.49 percent.
Image: https://www.tradingview.com/x/WTDjXtBG/
I had also pointed out earlier that if the bulls are thrashed in the next couple of sessions, there will be a higher probability of the price skidding to the consolidation zone near $240. I still maintain this view.
For further clarity, take a look at the latest technical aspects of the daily BTC-USD price chart below.
Bitcoin Chart Structure – No significant change in the chart structure as the price remains only minutely changed.
Fibonacci Retracements – Since the price has closed below the 61.8 percent Fibonacci retracement level of $256.82, Bitcoin is struggling to sustain above it even if it crosses the mark intraday.
Moving Average Convergence Divergence – The MACD has slumped to yet another low of -5.6380, the Signal Line has dropped to -3.5939, and the Histogram is at -2.0441.
Momentum – The Momentum indicator has shown a surprising uptick in its value (see the image above). The latest Momentum reading is -6.7200.
Money Flow Index – The MFI has crashed to an outrageously oversold level of 7.5295.
Relative Strength Index – The 14-day RSI value is now sustaining at 34.6694.
Conclusion
Exit your long positions. The bulls are looking too weak currently. Long positions can be considered when the price closes above the 61.8 percent Fibonacci resistance of $256.82.
The current Bitcoin price level offers a very lucrative, low-risk opportunity to go short in Bitcoin. Place your bearish bets now for a target of $242 by placing a strict stop-loss above $257.
