In my prior analysis, Finally, a Breakout!, I had mentioned that Bitcoin may rise further to challenge the previous strong support level of $231. The price did advance to $230.79 followed by minor booking, which has brought the price down to $228.49.
With Bitcoin unable to overcome the supply pressure near the resistance level, it becomes important to question whether it remains a buy on dips candidate or not. Let’s find that out with the technical analysis of the 240-minute BTC/USD price chart below.
Bitcoin Chart Structure – As can be seen from the chart above, Bitcoin first retested the level of $227 and then jumped to higher levels. The jump stretched the price to the previous supporting level (currently the resistance) of $231. Now, when the price comes down, bulls will be looking to add to their long positions.
Fibonacci Retracements – The cryptocurrency failed to cross the 50% Fibonacci retracement hurdle of $231. However, the 61.8% retracement of $227.20 should still act as a cushion to the price.