In the previous Bitcoin price analysis, we had concluded that Bitcoin is going through a healthy correction and market participants should use it as an opportunity to create light long positions by placing a stop-loss below the support of $235.
As can be seen, Bitcoin has rebounded swiftly after retesting the support line and this may initiate the second leg of the rebound. The target for the upside is $260.
Take a look at the latest technical factors keeping the cryptocurrency afloat.
Bitcoin Chart Structure – Currently trading at $240.70, Bitcoin is only slightly up from yesterday’s $239.03. The highlight of the yesterday’s session i.e. the support retest and the subsequent rebound should give confidence to the bulls.
Fibonacci Retracements – A factor which earlier limited the appreciation in Bitcoin price may not do the same this time. The 38.2% Fibonacci retracement of $243.84 may be taken out in the next attempt.
Moving Average Convergence Divergence – The Histogram maintains its flattish bias even as both MACD and Signal Line continue to erase losses. The latest values of MACD, Signal Line and Histogram