Continuing with its upward price action, Bitcoin has hit the near-term ceiling and now awaits a positive trigger to breach through. Bitcoin has advanced from yesterday’s $234.39 to the current $236.10. As the cryptocurrency hits a roadblock, it is only helpful to know a proper course of action in the highly volatile Bitcoin market.
Technical analysis of the 240-minute BTC/USD price chart indicates that booking out of long positions would be the wise thing to do.
Bitcoin Chart Structure – The chart structure above reveals that Bitcoin is kissing the resistance zone, and a breakout on the upside will set the target at $244. However, failure to sustain higher valuations may force the currency down back to $230-levels. $236-238 is the hurdle that bulls must cross, and soon!
Fibonacci Retracements – I had mentioned in my previous analysis that the cryptocurrency will face resistance at the 38.2% Fibonacci retracement level of $234.68. Backed by optimism, the bulls have managed to rise above this supply level, and even retested it once to establish it as a support level.
Moving Average Convergence Divergence – The MACD indicator has erased all the losses and is currently slightly positive at 0.0532. The Histogram also stays in the positive territory with a value of 0.3889.
Relative Strength Index – That bulls are escalating the force to turn the battle in their favor can also be confirmed from the 14-4h RSI indicator reading of 56.3973. Sustenance above 50 will instill fear in the hearts of the short-sellers.
Bitcoin has reached a crucial technical price level, above which, it can greatly improve its chances of staging a near-term trend reversal. Long position holders should consider booking partial or full profits and initiate fresh longs when the cryptocurrency breaks and sustains above the resistance zone. Building light short positions can also be considered at current levels.