As mentioned in the previous Bitcoin price technical analysis, Afloat, But For How Long?, the remarkable work done by the bulls to defend their crucial weekly support of $220-225 has finally paid off during this weekend as Bitcoin price surged 5.29 percent to $241.01.
During the latest price move, Bitcoin also crossed a near-term resistance which had kept it subdued for several sessions. But let us now discuss the price targets, the supports and the resistances.
Bitcoin Chart Structure – Since August 19th, Bitcoin had been trading with its upside capped near $235 (we discussed this resistance in earlier analyses as well). This weekend the short-sellers were found of patience and eventually, the bulls won. According to the chart structure, I see good resistance near $260-270.
Moving Averages – Bitcoin can be seen trading just a tad above the 30-day SMA of $239.6230, however, it remains to be seen whether it will sustain above this level or not. The 200-day SMA of $250.4675 will act as the next hurdle for the bulls.
Fibonacci Retracements – It must also be noted that presently, Bitcoin is just beneath $243.85 – the 38.2% Fibonacci retracement of the entire fall from $318 to $198. Keep an eye on the 50% Fibonacci retracement of $258.
Moving Average Convergence Divergence – The MACD is fast soaring above the Signal Line, leading to gains in Histogram. The latest values of MACD and Signal Line are still however in the negative region (see the chart above).
Money Flow Index – The MFI is now in the sniffing distance of the overbought territory with its latest value of 73.5319.
Relative Strength Index – The RSI has finally broken past the 50-mark after an extended period of low-strenth readings. It is now at 51.6032.
If the bullish momentum accelerates, Bitcoin can head towards $260, but beyond that, it is expected to face tremendous selling pressure. Therefore, keep exiting on further gains. The previous resistance of $235 should now act as a support.