Bitcoin has risen more than 1% since yesterday to $295.76 as bulls made another attempt at crossing the supply hurdle. As technical factors come into play, we may eventually see a decisive breach of the resistance.
In the last analysis Bulls Struggle At Resistance, I had concluded that Bitcoin is a buy on dips opportunity, and as can be seen, the price did dip to $286.43 before bulls rushed in to add Bitcoin to their portfolio and took the price to an intraday high of $297.44.
Looking technically at the daily BTC-USD price chart conveys that even though the price rise is still capped by the resistance, we may see a bullish breakout in the coming sessions.
Bitcoin Chart Structure – The chart structure is bullish at best, and it is only a matter of time before we trade above the psychological level of $300 again. The last bullish candle is a strong indication that the gains may come sooner than later.
Moving Average Convergence Divergence – MACD has widened the gap with Signal Line, leading to gains in the Histogram. The most recent values are 7.7639, 6.9932 and 0.7707 for MACD, Signal Line and Histogram respectively.
Momentum – The Momentum indicator has shown progress, reaching 18.9700 from 13.3600.
Money Flow Index – The MFI adds to earlier gains and is now at 58.4833.
Relative Strength Index – The strength reading is showing an increase along with price rise, a healthy relation. The latest value is 65.9646.
Bitcoin is receiving strong support at lower levels and investors should look to buy on dips for a target above $300. Stop-loss for the long trade should be based on personal risk-appetite. I would suggest following a trade which provides a risk-reward ratio of 1:2.5 at least.
Aggressive traders can short at current levels and cover their positions on small declines.