Bitcoin Price Technical Analysis for 17/8/2015 – Can Bitcoin Survive This?

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Bitcoin Price Down. Bearish Overarching Momentum. Newsbtc Bitcoin Analysis.
Bitcoin Price Down. Bearish Overarching Momentum. Newsbtc Bitcoin Analysis.

Bitcoin has fallen 2.09 percent during the weekend to reach an extremely important trading level. The price of Bitcoin now is $256.74, in close vicinity to what we had been discussing in the many previous analyses.

Now as Bitcoin has reached its target price of $256, with reference to the descending triangle pattern, it has improved the prospects of a short-term rebound. So, will there be any? Let us find out in the technical analysis of the daily BTC-USD price chart below.

Bitcoin price chart
Bitcoin price chart

Image: https://www.tradingview.com/x/rQPkh3Ev/

Bitcoin Chart Structure – The Bitcoin price has been slumping ever since it hit its peak of $318 this year. The price is now down roughly 20 percent from the peak value. But, it is currently at a very safe level where some buyers may look to go long in the cryptocurrency.

Fibonacci Retracements – Even though the wait stretched for a bit longer, the bears have pushed the price down to the crucial 61.8% Fibonacci retracement level of $256.80. Below this, the next support is near $240.

Moving Average Convergence Divergence – Even as the Histogram limits its losses, the MACD and the Signal Line have been pressured into further declines. The latest values of MACD, Signal Line and Histogram are -5.1757, -3.0763 and -2.0994 respectively.

Momentum – The Momentum indicator is relatively unchanged at -22.8900.

Money Flow Index – After a brief period of consolidation, the MFI can be seen fast approaching the dangerously oversold level of 10. It is presently at 13.6555.

Relative Strength Index – The RSI has weakened to 35.6838 as bulls lose ground.

Conclusion

I am of the opinion that the present level should invite inflows into Bitcoin which will help it sustain at the current level or even stage a comeback. The technical indications are also supportive of Bitcoin at this instant. However, if the bears decimate the bulls in the next couple of sessions, expect another 5-7 percent decline.