Bitcoin Price Technical Analysis for 13/8/2015 – Bulls Weak

Bitcoin price has fallen by 1.14 percent as bulls caved under the selling pressure and breached a crucial Fibonacci support level.

At $267.15, Bitcoin could witness continued dumping and is expected to hit $256, if $260 is pierced.

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Bitcoin price chart

Image: https://www.tradingview.com/x/7gOC1U9T/

A technical check of the daily BTC-USD price chart has been given below.

Bitcoin Chart Structure – As can be seen, Bitcoin failed to sustain above the $270-mark and is now nearing its recent low of $260. The resistance on the upside remains the base of the descending triangle at around $277.

Fibonacci Retracements – The latest decline has pushed the price of Bitcoin below the 50% Fibonacci retracement of $268.50. The next important support comes in at the 61.8% Fibonacci retracement of $256.82.

Moving Average Convergence Divergence – Apart from Histogram, both MACD and Signal Line have reported a loss in their values. While Histogram has risen marginally to -2.5054, MACD and Signal Line have depreciated to -2.8302 and -0.3248 respectively.

Momentum – The Momentum reading underwent a reduction in the wake of falling price; the value is now -13.2800.

Money Flow Index – The MFI is down to 20.6815 as bulls struggle to stand firm.

Relative Strength Index – Like all other indicators, the 14-day RSI has also declined, to 42.3092.

Conclusion

Bitcoin, at the current price level, does not offer an attractive trading opportunity. Let the price move a bit more towards the extremes i.e. either $260 or $275 before initiating a trade.

Another sense that I am getting from the Bitcoin market is that this week may be of small moves, maximum 5 percent on either side. So, it will test the patience of the market participants and they must remain patient and let the price come to attractive trading levels. Place strict stop-losses and go ahead with only those trades which offer a risk-reward ratio of at least 1:2.5.

Volatility is expected to remain relatively low in the coming sessions as well.

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012