Bitcoin Price Technical Analysis for 24/8/2015 – Pessimism Rules

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.

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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 levels for 2015, and is also dragging the Signal Line with it. The values for MACD, Signal Line and Histogram are -12.8421, -9.7561 and -3.0860 respectively.

Momentum –The Momentum reading of -37.4700 speaks volumes of the extreme pessimism surrounding the value of the cryptocurrency.

Money Flow Index – The MFI is teetering on the brink of oversold levels; the latest observation was made at 21.7689.

Relative Strength Index ­– The RSI is indicating oversold conditions with a value of 28.6993.

Conclusion

Market participants should refrain from timing the market and position their trades according to the price action. Wait for a breakdown below $220 to aggressively short Bitcoin for a target of $170-190.

If the range holds for some more time, then consider range trading as well, but by following strict stop-losses.

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012