The Bitcoin price is little changed from yesterday and is still hovering near the crucial level of $265. But, the chart structure has witnessed a dent and the hopes of reaching $280 are now hinged on the upward sloping Short-term Support (marked in the chart below).
Image: https://www.tradingview.com/x/x1jLbCNs/
An analysis of the BTC/USD 240-minute price chart has been presented here.
Chart Structure – In my yesterday’s BTC/USD analysis titled Support Established, I mentioned that Bitcoin had broken out from the contracting channel and was sustaining above $265. But, in the past 12 hours, the digital currency has cracked below this key support, hit a low of sub-260, and is now seen struggling to climb further. A close below $260 could puncture the bullish momentum and send the price down to $230 while sustenance of the trend may push Bitcoin up to $280.
Moving Average Convergence Divergence – The MACD indicator has neared the positive zone along with the Signal Line, with values of -0.5063 and -1.1432, respectively. The Histogram value has however witnessed a dip and is at 0.6369. If bulls are able to sustain the Histogram value in the positive region for some more time, then bears may lose their patience and short-covering may set in.
Momentum – The consolidation in the Bitcoin price has evoked a similar action in the Momentum indicator reading. Short-term traders can take heart from the fact that the reading is still above 0, at 4.4200.
Relative Strength Index – The cryptocurrency has been weakening amid a lack of positive triggers and as we have normally seen, no good news is bad news for Bitcoin. The latest value of 48.7678 is just minutely in favor of the sellers.
Short-term traders are advised to create long positions for a target of $280 while keeping a strict stop-loss just below $260. Market participants with a medium-term horizon may use rallies up to $280 to go short for a target of $230.
