Bitcoin ended the previous week on an extremely strong note even as the Greece crisis looms. Since our last discussion Hanging by a Thread, the price has jumped 3.47% to $250.15.
A major contribution to Bitcoin’s price rise could be of speculators, who are lifting the price higher in the anticipation that a Grexit could result in the adoption of Bitcoin as the Greece’s new official currency.
So, can Bitcoin head higher or is $250 to big a hurdle to cross? Let us find out via the technical analysis of the 240-minute BTC-USD price chart.
Bitcoin Chart Structure – As reports became clear that the Greek government and the creditors had hit a deadlock once again, the bulls started taking the game away from the bears. The price hit a peak value of $252 before it retested the previous top of $247 (check the chart above). The support of $240 has been established as a strong buying zone for the cryptocurrency.
Moving Average Convergence Divergence – Even as the price rises, the MACD indicator seems to have gone flat while the Signal Line surges. The latest MACD value is 1.7653 while the recent Signal Line value is 1.5197. This puts Histogram on the edge with a value of 0.2456.
Momentum – The Momentum reading has come in at 4.9500, which should give confidence to the bulls.
Relative Strength Index – The underlying strength is strongly favoring the buyers; the latest 14-4h RSI value is 63.1117.
Bitcoin has made yet another attempt at sustaining above the $250-mark. However, bulls must make sure that they do not lose strength if they are to go higher. Market participants can also expect some consolidation at current levels. Wait for a price decline before initiating any long positions in Bitcoin. Do not short this cryptocurrency now.