Bitcoin Price Technical Analysis for 21/7/2015 – Wide Divergences

Bitcoin has risen 1.3% or $3.6 since yesterday as bulls finally make an attempt to approach the resistance. This is somewhat encouraging given that the Greek banks were opened yesterday and citizens were allowed to withdraw their Euros. Maybe the market is expecting the Greeks to convert their withdrawn Euros into Bitcoin for capital preservation purposes.

Currently trading at $279.69, Bitcoin offers low-risk trading opportunities to the market participants. But before we get to that, please take note of the wide divergence between the price action and the technical indicators.

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Bitcoin Chart Structure – A closer look at the daily BTC-USD chart above would reveal that post its breach of the support line, Bitcoin tested floor from its previous peak and is currently in the process of base formation. If the price does break above the resistance, then we can expect a full-blown U-shaped recovery.

Moving Average Convergence Divergence – But there is a strong disconnect between the price action and the technical considerations. MACD has extended its string of losses and is now down to 7.4287 while the Signal

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