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