After Bitcoin dived into deeply oversold territory following its collapse on Black Monday, massive unwinding of short positions has taken place thereby lifting the price substantially. Bitcoin is trading at $224.05, up more than 8 percent.
In the previous Bitcoin price analysis Black Monday, it was said that a relief rally would occur sooner which should be used to create short positions. Therefore, if the Bitcoin price nears its previous top of $235, create bearish bets by placing a stop-loss above it.
Take a look at the latest technical considerations below.
Bitcoin Chart Structure – As can be seen from the daily BTC-USD chart above, Bitcoin had pierced the important floor of $220. Now, the cryptocurrency can be seen flirting above this level but I am expecting the previous sell-off point of $235 to play spoilsport again. Bitcoin has been maintaining a lower top, lower bottom structure since the mid of July, and it is expected to continue.
Moving Average Convergence Divergence – While the decline in MACD has been abated temporarily, the Signal Line is still