Bitcoin has slid another 1.31% to $239.85 and is threatening to break the crucial support zone of $238-240. The decline comes in the aftermath of the fallout between the Greek government and its creditors; the creditors have rejected Greek Prime Minister’s bailout proposals and in return, the Greek government turned down the creditors’ counter-proposal. In all of this, Bitcoin has remained fairly strong and is still closing above $240. Read more on this: Bitcoin’s “Meh!” to Greek Proposal Rejection.
Bitcoin is a risky trade right now: the technical indicators are saying ‘sell’ while the support zone is still being respected. Check out the technical analysis of the 240-minute BTC-USD price chart below.
Bitcoin Price Chart – As can be seen from the chart above, the cryptocurrency is trying to sustain above the previous top. Even on a strong volume decline, the cryptocurrency has failed to pierce this support zone. The fact that Bitcoin is resisting closing below $240 is another point to consider for the traders.
Moving Average Convergence Divergence – The under-pressure Bitcoin now sees its Signal Line value join the MACD in the negative territory. The MACD, Signal Line and Histogram have respective values of -0.9405, -0.2685 and -0.6720.
Momentum – The Momentum indicator reflects a strong bearish bias with a value of -3.1500.
Relative Strength Index – The underlying strength continues to weaken even as the support holds. The latest 14-4h RSI value has come in at 39.3851.
Bitcoin is currently giving mixed signals as can be seen from the above technical considerations. Therefore, market participants are advised to wait for a breakdown or let the cryptocurrency shed the pessimism before initiating a trade. Those who are long in Bitcoin must place a tight stop-loss (closing basis) below the support zone. If the support is breached, initiate light short positions.