Bitcoin Price Technical Analysis for 5/8/2015 – Follow This!

Bitcoin has approached the resistance of the descending triangle after extending its mini relief rally. Bitcoin is trading at $285.63, up $1.72 or 0.60 percent.

This increase in price gives the short-sellers an extremely low-risk trading opportunity. However, the technical signals aren’t conveying anything decisively.

Bitcoin price chartBitcoin price chart


Take a look at the considerations drawn from the daily BTC-USD price chart below.

Bitcoin Chart Structure – Bitcoin is currently testing its downward sloping trendline. The distance between the resistance and the support continues to contract and hence, a high-volume breakout may be in the offing. If the cryptocurrency breaches the resistance and goes past the previous high of $297, then huge short-covering will be observed.

Fibonacci Retracements – Bitcoin should revisit $280 – the 38.2% Fibonacci retracement – if the bulls lose the grip now.

Moving Average Convergence Divergence – What’s confounding is that even as the price has risen, MACD hasn’t showed much strength in its reading; it is still subdued below the Signal Line. The latest MACD, Signal Line and Histogram values are 3.4487, 5.4192 and -1.9705 respectively.

Momentum – The Momentum indicator has, in fact, reported

Read more ... source: Bitcoin Warrior