Bitcoin has hit the ground with a thud as bulls ran out of fuel in the middle of this week. The decline of the past 3 sessions has undone all the hard work done by the buyers after the price hit a low of $261.
Bitcoin is now trading at $262.22, down 1.84 percent. It has hit an intraday low of $262. And I am sensing more pain if $260 is breached.
Take a look at the technical picture of the daily BTC-USD price chart below.
Bitcoin Chart Structure – Bitcoin has witnessed an incessant selling pressure after it hit its recent high of $271.50. If the cryptocurrency holds its base of $260, then a small range of $260-270 can be considered in the near term.
Fibonacci Retracements – We discussed in the previous Bitcoin technical analysis Bulls Weak that since the 50% Fibonacci retracement of $268.50 has been breached, the next support would be the 61.8% Fibonacci retracement of $256.
Moving Average Convergence Divergence – Both MACD and Signal Line have succumbed to lower levels following the