Bitcoin continues to rise strongly and sharply post its crucial breakout. In my previous analysis titled Breakout Achieved, Next Target $245?, I did mention the possibility of the price touching $245 but did expect minor hindrance near $240. However, Bitcoin had other plans. The cryptocurrency not only thwarted all the bearish blows in its way but also exceeded the expectations by comfortably crossing the $250-mark.
Since yesterday, Bitcoin has advanced more than 4.7% to trade at $246.85.
Image: https://www.tradingview.com/x/H6RZCBoa/
Technically, even though bulls have a strong and steady grip on the situation, the upmove will not be easy from here now. An analysis of the 240-minute BTC-USD price chart has been presented below.
Bitcoin Chart Structure – Bitcoin’s surprisingly strong move must have taken many by surprise. And a lot of short positions must have been covered when the price leapfrogged $250. But a closer look at the above chart would reveal that Bitcoin is currently struggling to sustain above $250. The upside has also been capped by a previous support zone.
Moving Average Convergence Divergence – The MACD indicator and the Signal Line indicate strong bullish values. The MACD indicator reading has jumped to a 2-month high of 4.3650 while the Signal Line value rose to 2.6962. The Histogram value has also gained to 1.6688, its highest value in over a month.
Momentum – The Momentum indicator has topped the previous peaks of the past 2 months. The latest 10-4h Momentum value is 12.1400.
Relative Strength Index – The cryptocurrency is comfortably trading at overbought valuations. The latest 14-4h RSI reading has come in at 71.4152.
Conclusion
Bitcoin is very overbought from a near-term perspective and also faces stiff resistance above the $250-mark. Therefore, market participants would be wise to adopt a wait and watch approach to allow the cryptocurrency to cool off, before initiating fresh trades.
Since yesterday, Bitcoin has advanced more than […]
