The Greek deal continues to weigh on Bitcoin which witnessed a cut of $4.79 or 1.63%. It now seems that Bitcoin could be setting the stage for a bigger move.
Technical analysis of the below given Daily BTC-USD chart reveals a bigger picture than yesterday’s decline.
Bitcoin Chart Structure – With yesterday’s drop, Bitcoin has neared the upward sloping support line which is expected to cushion the price near $278-280. However, the higher top, higher bottom price structure is comfortably maintained.
Moving Average Convergence Divergence – The MACD and the Signal Line report healthy values once again. MACD is currently reading a value of 13.0754 while Signal Line has a value of 10.8195, keeping the Histogram afloat at 2.2559.
Momentum – Even as the MACD indicator remains steady, another momentum indicator has shown a deep drop. The 10-d Momentum indicator reading has toppled to 17.3900.
Money Flow Index – The MFI is sustaining near the July low of 56.0889. The downward trend seems to have been arrested for the meanwhile as the current value comes in higher at 59.8579.
Relative Strength Index – The price cut hasn’t posed any serious risk to the underlying bullish strength which completes its 2 weeks above the 60 level. The latest value has been registered at 63.3488.
In my previous analysis titled Support Holds, I had mentioned that levels near the support line could act as good entry points for the bulls, and I maintain that view. Market participants are also advised to keep track of the events in the Greece arena which may act as a trigger for the markets. At this point, things are slightly more in favor of the buyers, and hence buying with a strict stop-loss below the support levels of $278-280 seems to be the better choice. I am expecting a big move in the next 48 hours.