Bitcoin’s struggle to head higher continues for yet another day as the cryptocurrency extends its boring consolidation phase. From yesterday’s observation at $237.60, Bitcoin has dropped to $236.90 but the higher-top, higher-bottom structure is being maintained. In my opinion, that is the only big positive that buyers could take heart from.
Technical analysis of the daily BTC-USD price chart suggests that the bulls are still running the show.
Bitcoin Chart Structure – As has been marked in the chart above, Bitcoin has been maintaining a higher top, higher bottom pattern even during the current choppy market. But this pattern will be violated if Bitcoin closes below $230, and will provide the bears a lucrative opportunity to pounce upon.
The 12-day SMA of $233.366 is supporting Bitcoin well.
Moving Average Convergence Divergence – As MACD slows up on shedding losses, Histogram is limited to 1.3058. MACD is now at -0.0245 while Signal Line is at -1.3303.
Momentum – The increasing Momentum value should lend confidence to the market participants in the upward chart structure. This also means that traders can use dips to go long in Bitcoin. The Momentum value has jumped to 10.7500.
Money Flow Index – The MFI value seems to be settling down after continuously amassing gains for nearly a week. The current value is 59.8859.
Relative Strength Index – The 14-day RSI is a tad neutral at 53.0989.
Even though Bitcoin is losing value now, it may be an opportunity to go long in the cryptocurrency as both the chart structure and the underlying momentum remain favorable.
But, the reason why I call it as a boring phase is because I am not expecting any huge returns until Bitcoin crosses $245 in quick time. The market may spend even more time in the current range.