While attempts made by the bulls to pull Bitcoin higher are yielding no good results, the technical indicators are slowly and steadily reaching positive grounds. But having said, I would still stand by my advice doled out in The Bears Have Not Gone Away that market participants should not resort to impulse buying and instead, remain short on the cryptocurrency.
Bitcoin is trading marginally higher at $224.99, and I believe that it is the current brief consolidation that is causing a jump in the values of the technical indicators rather than some real, positive sentiments. I am ready to be proved wrong!
Take a look at the technical considerations taken from the daily BTC-USD price chart below.
Bitcoin Chart Structure –As can be seen, Bitcoin’s closing prices have been limited to near $225. The cryptocurrency also retested the support lent by $220.
Moving Averages – The 30-day SMA is on the verge of crossing the 200-day SMA on the downside. The latest value of the 30-day SMA is $255.3837 while that of the latter is $250.5778.
Moving Average Convergence Divergence –