Bitcoin has retreated from its monthly highs as market participants rush to book profits in their long positions amid fears that the cryptocurrency may have been overbought. Bitcoin is currently trading at $244.12, down 1.38 percent and closer to the crucial upward sloping support line.
Just yesterday, we discussed how Bitcoin started the week on a strong note, and flash forward 24 hours, the bulls have frittered away the advantage. The uptrend is still intact, but the momentum and strength readings have clearly been hit.
Bitcoin Chart Structure – As Bitcoin struggles to limit its losses, the bears have pushed the price below the 200-day SMA of $245.4708. The upper range of the BB, as was put in the previous Bitcoin price analysis, has acted as the resistance. The violation of $240 will be the first strong signal of a trend reversal.
Moving Average Convergence Divergence – The Histogram has seen a cut in its value as MACD goes horizontal. The latest value of MACD is 2.9014, that of Signal Line is 2.3082, and that of Histogram is