I had expected a stronger reaction in the Bitcoin markets after the Greek parliament bailout voting results. However, even as Greece’s parliament approves austerity measures, Bitcoin’s calmness is very intriguing.
From yesterday’s price observation of $288.89, Bitcoin has edged up marginally to $289.97.
Technical analysis of the daily BTC-USD price chart conveys that even though the bulls have the upper hand now, they must not fritter away the advantage.
Bitcoin Chart Structure – A closer look at the last 3 candles would help us to gather that the bulls are giving away the achieved gains as the day comes to a close. The buyers have failed to push the price to a higher high in the past 3 sessions. The next crucial support level is near $278-280.
Moving Average Convergence Divergence – As Bitcoin struggles to maintain its upward bias, the Histogram witnesses a decline to 1.2703. The MACD has gone horizontal at 12.6067 while the Signal Line narrows the gap with a value of 11.3364.
Momentum – The Momentum reading has witnessed an uptick from previous observation of 17.3900 to 21.4600.
Money Flow Index – The MFI also remains relatively stable at 60.1738.
Relative Strength Index – Bitcoin’s underlying strength reading remains immensely strong at 63.3654.
Considerations derived from the price chart and the indicators convey that the current scenario is still favorable to the buyers. Bitcoin maintains its higher top, higher bottom structure and market participants may look to add fresh long positions near $278-280 by keeping a tight stop below the support line.
In case the support is breached, short positions can also be created for a target of $255-260 by maintaining a stop-loss above $280 (closing basis).
In my previous analysis titled Expecting Some Action, I had mentioned that a big
Originally appeared at: http://www.newsbtc.com/2015/07/16/bitcoin-price-technical-analysis-for-1672015-awkward-calmness/