Just a few hours before, Bitcoin price topped up to a new intraday peak (at $266) and is now hinting to flatten out, as what normally happens. The price is now attempting to build up a new base near this new tropospheric level, while facing a firm selling pressure towards the next downside support near 260.
The traders meanwhile are already drawing fundamentals near this wild rally. Many believe the launch of Barry Silbert’s Bitcoin Investment Fund had influenced the demand of Bitcoins; therefore the rally. Some are also associating the upcoming Silk Road Bitcoin auction to be the cause of this recent new spike. In the end, all seem to be mere speculations.
This is definitely not a time to get excited, as the current rally seems like a repetition of what we have been encountering in last few weeks. The volatile green candles appears out of flatten markets, establish new higher highs, and market eventually reverses positions towards south. To make sure the current bull run extends, price at least needs to cross above the 315-mark. Until that time, a dump awaits as per the recent price actions.
Therefore, we are still looking for a dump towards the near-term support level around 260. The technical indicators, without a doubt, are however horning like bulls now. The price is way above the 50H SMA, while the RSI is just shy of testing the overbought threshold near 70. The MACD blue curve meanwhile has its head towards north. A confirmed retest towards the current peak near 266 will establish 275 as the next upside risk. Meanwhile, the primary downside risk will continue to stay near 245, thanks to the selling pressures near the peak points.