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.
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