Bitcoin Price Technical Analysis for 26/8/2015 – And Here Comes the Rebound

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.

Bitcoin chart

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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

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