Bitcoin is trading under pressure as the Greek banks are supposed to open to the public today.
Down 0.63% since our previous observation, Bitcoin has broken the upward sloping trendline, thereby creating a low-risk, shorting opportunity. Bitcoin is now trading at $276.09.
In my analysis Buy, With Caution! I expressed that I expected a swift decline in the price in case the trendline was breached. Even though the support has been pierced and the price remains relatively flat, technicals have undergone a severe deterioration.
Take a look at the technical analysis of the daily BTC-USD chart below.
Bitcoin Chart Structure – Bitcoin’s upward journey which started around 28th June has been halted as Greece struck a deal with its creditors and it will now receive funding from the ECB and the EU. The violated support line will now act as a near-term resistance for the cryptocurrency.
Moving Average Convergence Divergence – While the price trades on a relatively flat basis, the Histogram has witnessed a considerable depreciation; from -0.9234 to -3.5307. The MACD has slid to 7.7339 while the Signal Line stays at 11.2645.
Momentum – The Momentum indicator has had a drastic drop from 12.3300 to -9.1400.
Money Flow Index – The MFI has dropped below the 50-mark and is at a one-month low of 43.6596.
Relative Strength Index – The only point of comfort is the RSI value of 54.4129.
The technical indications are deteriorating as bulls make no attempt to register a higher close. Market participants should consider building short positions now or on a bounce by placing a stop-loss above the marked resistance line, which as of this moment, would be a pressure zone near $282.
Weigh your risk appetite before making a trade, and go ahead with those which provide a