Bitcoin dived more than 8 percent as it became clear that Greece would do everything to remain in the Eurozone. The Alexis Tsipras-led government has struck a deal with its creditors yesterday, and a Grexit has been more or less ruled out.
Post the announcement, Bitcoin fell from our previous observation of $307.87 to a low of $281 but soon trimmed the losses and is now trading at $293.68.
Until the support line, drawn in the daily BTC-USD chart above is not violated, bulls will have the upper hand.
Bitcoin Chart Structure – As the price approached the support line following the collapse, massive short covering and some value buying emerged which took the price roughly 4 percent higher from the lowest point of yesterday. The price action has reinforced the support line.
Moving Average Convergence Divergence – Bulls can take confidence from the latest MACD, Signal Line and Histogram values of 13.8294, 10.2689 and 3.5605 respectively.
Momentum – Another positive for the bulls is the strongly positive value of 33.4800 of the Momentum indicator.
Money Flow Index – The MFI has witnessed a decline in its value to 59.3305. A further decline in the MFI value could be