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 – The 14 4-h RSI is maintaining a neutral stance with a value of 50.7310.
Conclusion
Bitcoin is well poised to increase its duration inside the $400-440 range, at least for the next couple of sessions. There is a high probability that sellers make a re-entry at the current level and push the price down to $400. This short call is for aggressive traders only.
Traders with low risk-appetite should build bearish positions near the strong resistance level of $465. Bulls will gain confidence only above this bears’ mansion.
Make wise trading decisions by keeping the personal risk preferences in mind. This advice might be helpful to aggressive traders but not to others. Therefore, blindly following this should be avoided
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