In yesterday’s market session, bears came charging down on Bitcoin causing a 1.66 percent drop in the price and pushing it below the $240-mark.
At $239.03, Bitcoin is now in close proximity to the support provided by the horizontal line and is currently sustaining at the 30-day SMA OF $236.9643.
However, the correction is not surprising given the number of resistances that Bitcoin has to cross if it is to reach its target of $260. But, is this correction an opportunity that market participants should pounce on, or is it signaling a short-term trend reversal? Let us find out through the latest technical considerations obtained using the daily BTC-USD price chart.
Bitcoin Chart Structure – Bitcoin’s faltering is expected to cease as it approaches the support of $235. Buyers should make a re-entry at those levels otherwise this drop will escalate into a serious bearish grip on Bitcoin.
Moving Average Convergence Divergence – As the price takes a hit, so does the MACD. On its upward journey, MACD slowed down as profit booking dragged the Bitcoin market. The Histogram declined to 3.4143,