Bitcoin has rebounded after taking support from the trendline discussed earlier. The price is now trading at $232.73, 1.79 percent higher than yesterday. The rebound of the past two sessions is erasing the losses for the week.
As the cryptocurrency heads into the weekend, things become even more interesting as a new range is expected to trap Bitcoin. I am expecting the level of $220 to continue playing as a support while the zone of $240-242 should act as an upside barrier to Bitcoin.
Technical analysis of the daily BTC-USD price chart has been presented below.
Bitcoin Chart Structure – Even as Bitcoin stages a short-covering-led bounce, there is a less probability of it immediately piercing the earlier consolidation zone of $240-242. The level of $220 has attracted buying interest repeatedly before, and until and unless that breaks decisively, market participants can safely go long on declines.
Fibonacci Retracements –The 76.4 percent Fibonacci retracement of $242.36 is expected to add additional pressure on the bulls.
Moving Average Convergence Divergence – The MACD and the Signal Line continue to