Bitcoin briefly topped $250 for the first time since August 19, 2015, hitting a fresh monthly high of $250.09. We concluded the previous Bitcoin price technical analysis Retreats From Monthly Highs on a positive note saying that market participants should not be concerned about the drop and instead go long in Bitcoin near $242 for a target of $250. As can be seen, Bitcoin hit an intraday low of $242.82 before meeting the said target.
Bitcoin is currently trading at $248.81, up 1.92 percent. And yes, we stand by our long call!
Below are the latest technical considerations driving us to remain bullish on Bitcoin, but not without a stop-loss.
Bitcoin Chart Structure – From the daily BTC-USD price chart above, Bitcoin can be seen trading in an upward channel. This means that the buying levels will move higher and so will the price targets. Currently, buyers should look to accumulate Bitcoin near $242.50 for a target of $254.
Bollinger Bands – We also stated that the upper range of BB will act as a deterrent to the price rise. The same has been well established as Bitcoin dropped after failing to breach the BB resistance. But, more attempts may not be ruled out.
Moving Average Convergence Divergence – The MACD has raced to 3.4928 while the Signal Line has leapt to 2.6306 following the strong momentum. The Histogram looks sturdy at 0.8622.
Momentum – The latest Momentum reading is 10.2100.
Money Flow Index – Bitcoin is once again in the overbought territory, as per the latest MFI value of 80.0649.
Relative Strength Index – The RSI value has crossed 60, and is now at 63.0498.
Bitcoin is definitely a buy candidate, however, accounting for the overbought conditions, market participants should consider building long positions when it has cooled down to $242.50. Trade with light positions if you are risk-averse. Keep a stop-loss below $240.