Bitcoin rises more than 2 percent to $430.21, nearing our year-end target of $440. In the previous price technical analysis A No Trade Market, we mentioned that an increasing MFI often causes price appreciation, and we are witnessing just that.
The question now is: Would bitcoin be able to extend the gains or will it retrace its steps? Let us try to predict this with the help of technical analysis conducted on the 240-minute BTC-USD price chart.
Chart Structure – From the chart above, it can be observed that the cryptocurrency has risen to near the previous low (marked in green) and seems to have hit a roadblock. The level is expected to cap the upmove in the near-term.
Bollinger Bands – While the 20 4-h SMA was earlier capping the gains, bitcoin is now sustaining at the higher end of the BB.
Momentum – The Momentum indicator fails to inspire confidence with its latest value of 6.4400.
Money Flow Index – The MFI adds to its value for the second consecutive session, taking the total to 66.2648.
Relative Strength Index