In the previous Bitcoin price technical analysis Rebounds, we discussed how the cryptocurrency was erasing the losses for the past week. But, the entire positivity was put to rest over the weekend as bears made a comeback and long positions were fast liquidated at the slightest hint of a pullback.
Bitcoin, which is now trading at $227.93, has once again come closer to its important buying interest zone of $220-225.
As the price decline has pushed the price closer to its crucial support, market participants may also be factoring in a breach of support this time, but I would recommend waiting for two successive closes below the price cushion for 2015 before initiating short trades.
Take a look at the technical updates of the daily BTC-USD price chart.
Bitcoin Chart Structure – As discussed in earlier price analysis, the level of $240 has acted as a pressure point for the cryptocurrency. Bitcoin resumed its decline after peaking out at $237.66 while trying to sustain above $220.
Moving Average Convergence Divergence – The MACD is seriously heading towards extremely lower