Bitcoin continues to grow strong against the greenback as bulls utilize every correction to enter the digital currency, which is now trading at $280. Smart investors have been increasing their positions in Bitcoin ever since it plummeted below $200 in January this year. Investors can look forward to more gains as Bitcoin is giving promising signs to head higher and take out its immediate resistance of $280.
The analysis done on the 240-minute BTC/USD price chart above makes for a strong bullish case.
- The cryptocurrency is taking another shot at taking out and sustaining above $280, after having failed earlier. The continuous efforts of the bulls to get back into the game and challenge resistance levels is very encouraging from an investment point of view. This is a clear display of the positive undertone of the market.
- The latest price rise has been accompanied by a substantial rise in the strength reading as well. While the price has risen from $265 to $280, the Relative Strength Index has seen its reading jump from 50 to 62. A price appreciation supported by strength is a good measure of the bullish mood.
- Among the very interesting revelations from the chart is that despite all the downturns and sideways consolidation, the optimists have never let the RSI reading drop below 50. A reading below 50 indicates that bears are gaining control while sustenance above it lends credibility to the upmove.
- The Moving Average Convergence Divergence (MACD) indicator has also crossed the Signal line on the upside; another positive indication. The histogram value is now positive at 0.2134.
- One consideration which investors and traders alike must not leave unattended is that the price is trading close to the upper range of the Bollinger band and hence, the wait could get slightly longer.
This analysis is solely aimed at providing the technical points to the market participants, and in helping them make better, informed decisions.