In the previous Bitcoin price technical analysis titled Indicators Turning Positive, we discussed that the market participants should remain short on the cryptocurrency. Since then, Bitcoin has touched a high of $235.93 and a low of $226.31 very recently.
This was another failed attempt by the bulls, and a further 3-4 percent cut will complete jeopardize their plans.
Take a look at the latest technical indications provided by the daily BTC-USD price chart.
Bitcoin Chart Structure – There was another reason that made the recent jump unimpressive: Bitcoin failed to head above its previous high of $237.66. However, things will change significantly in favor of the longs if Bitcoin pierces above $235 (marked as the resistance) in quick time.
Moving Averages – This is one very bearish crossover that the market participants must take a look at. The 30-day SMA of $250.0727 has crossed the 200-day SMA of $250.7289 on the downside. When a short-term moving average crosses a long-term moving average on the downside, it indicates a bearish trend in the short-term.
Moving Average Convergence Divergence – Even while the MACD and the Signal Line are stuck in the negative region with respective values of -11.0700 and -13.0232, the Histogram has topped the 0-mark with the latest value coming in at 1.9532.
Momentum –The Momentum reading headed into the positive region but has once again taken a hit following the price decline. The latest value is -6.4900.
Money Flow Index –The MFI has surged to 53.9439, its highest value in over 3 weeks.
Relative Strength Index – The RSI reading of 38.0798 is indicative of the underlying weakness.
The technical picture for Bitcoin is still bearish. Market participants should continue to build short positions on jumps until $235 is breached on a closing basis.
In case, the bulls are unable to protect $215-220, expect a swift decline to sub-$200 levels.
Expect low volatility in the next couple of sessions.
This was another failed attempt by the bulls, and a further 3-4 percent cut will complete jeopardize their plans. bitcoin price chart Image: https://www.tradingview.com/x/XHPwVVph/
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