In my previous analysis titled Awaiting the Showdown!, I had expressed that a big move would rock the market during the weekend and there is a high probability that it may be on the upside. As we can see, Bitcoin has jumped a huge 14% to cross the $300 barrier and is comfortably trading at $307.87. Intraday, the cryptocurrency hit a fresh 7-month high of $317.99 but stopped short of registering a new high for 2015.
However, today’s Bitcoin price analysis would focus on whether to stay long or book some profits in the positions.
Technical analysis of the Daily BTC-USD price chart indicates that the market is near a strong resistance level and it is only wise to book profits in the long positions.
Bitcoin Chart Structure – It can be clearly seen that the level of $308-310 has been retested earlier thrice: twice as a support level and once as a resistance. With price nearing those levels again, traders can book partial profits, and wait for a decline to the support line (drawn in the chart).
Moving Average Convergence Divergence – The MACD and the Signal Line are very strong at the moment, with values of 14.8326 and 9.6590 respectively. The Histogram value is at 5.1736.
Momentum – The Momentum reading has surged to a 5-month high of 51.9500.
Money Flow – One worrying aspect is that even as the price continues to trend higher, the Money Flow Index has been flat (check the chart); this divergence could be indicative of a future trend reversal.
Relative Strength Index – Another worrisome sign is that the daily RSI is now at the highest level of 2015: 79.4324. Readings closer to 80 indicate highly overbought conditions.
Given the considerations above, I think it would only be wise to lock in some profits and wait for lower levels to make a re-entry into Bitcoin.