Post scripting another breakout from a contracting channel, Bitcoin rose to an intraday high of $247.99. With this gain, Bitcoin has marched towards the primary target of $250. On the increased hopes of a possible Greek government deal with its creditors, Bitcoin is trading up 1.04% at $246.98.
Market participants must book partial profits when the first target is met. The other two targets of this breakout are $255 and $260.
Technical indicators overlaid on the 240-minute BTC-USD price chart tell of a positive undertone for Bitcoin.
Bitcoin Chart Structure – As can be seen from the above chart, Bitcoin retested the breached resistance line and then headed higher. This marks the resistance as a near-term support level for Bitcoin. The cryptocurrency is presently challenging $248 repeatedly.
Momentum – The Momentum reading is only marginally changed; from yesterday’s 2.4700 to the present 2.4400.
Moving Average Convergence Divergence – After the breakout was confirmed and the broken resistance was retested, the MACD indicator staged a bullish crossover with the Signal Line. This has brought up the Histogram value into the positive region after a long period of negative values. The latest MACD, Signal Line and Histogram values are 0.6206, 0.2051 and 0.4155 respectively.
Relative Strength Index – Bitcoin’s inherent strength has further powered up to 58.1954, indicating a more pronounced hold of the bulls.
As the financial markets world over price in a possible Greek bailout deal, there may be a case of “sell on news” event. Those securities which had rallied in crisis times may witness severe profit booking. Therefore, it only makes sense to book profits in Bitcoin, which has added roughly 10% in gains this month, as the price advances. Stop-loss for the long position should be maintained just south of $240. Market participants are advised to stay abreast of the latest developments in order to avoid any price shocks.