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.
Image: https://www.tradingview.com/x/nZPtr3r3/
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.
Conclusion
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.
