Bitcoin has been struggling for the past couple of weeks as longs continue to book profits at higher levels near $465. This also makes sense given that the cryptocurrency is overbought from a weekly perspective. Bitcoin is currently trading at $439.71.
But, near-term long holders who could not get out near the tops may get another opportunity as a small bounce-back looks imminent. Below are the reasons why I believe so.
Technical analysis of the 4-h BTC-USD price chart reveals some interesting points.
- Support from 100 4-h SMA – The 100 4-h simple moving average of $433 is expected to act as a near-term cushion for the cryptocurrency, in case it drops again.
- Bollinger Bands – Bitcoin is languishing near the lower-end of the BB; such a move generally causes a small rebound.
- Momentum – The Momentum seems to have hit a bottom and looks set to turn in favor of the buyers. A value above 0 would confirm the bullish bias; it is currently -12.7900.
- Money Flow Index – The MFI is also indicating a possible jump in bitcoin price as it grows from the oversold territory. The current value of MFI is 27.0387.
- Relative Strength Index – A similar action has been witnessed in RSI; the 14-h RSI value has appreciated significantly from near-30 levels to 41.6707 in the past 24 hours.
The technical considerations clearly tell that bulls are re-energizing themselves for another bout. The bears may find it hard to keep the valuation depressed in the next 24-36 hours.
But, will bitcoin end 2015 above the Triple Top resistance marked in the price chart? For that to happen, the bulls will have to put up a strong fight. Clearing this hurdle will set the stage for 2016 beginning above $500, a level which a lot of market participants are eagerly waiting to see again.