Bitcoin Price Retreating; Still Bullish

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ForexMinute.com — The US government has lately finished auctioning its chunk of 50,000 BTC, which has resulted in some effectual Bitcoin price movements yesterday (to the downside). As we enter yet another day, Bitcoin has already attempted yet another rally, but has been shot back from 277, while facing the upside risk near 285.

BTC/USD 4H BitFinex Chart

CTN27

The BTC/USD is currently look bearish for near-term, while sighting 267 as its next support. The buying orders, as visible on other exchanges as well, indicates 260-267 area to be holding a very strong buying pressure. Therefore for long term, the mood is still bullish.

The technical indicators prove it further. As you can notice the chart above, the Bitcoin price is visibly above the 50-H SMA, while the RSI is near 52 — a neutral area. Also, the MACD indicator is trending forward in a positive territory, though still below the saffron signal line.

We have also drawn a Fib retracement diagram between 294 and 262 to indicate the near-term support/resistance pivots. It is clearly showing price targeting 261 as its ultimate support, a point which is also aligning with the black curve (the 50-H SMA). Therefore, the bullish bias will invalidate if the price goes below this particular point. No wonder it is also a strong opportunity for traders to enter the market amid a fundamentally bullish Bitcoin. To the upside, a close near 269 will also validate the bearish momentum.

If we do see a retest towards north in coming hours, a stop loss set just above 269 will ensure a timely exit. If the price goes above 270, it would once again bring the 281 resistance in sight, with upside risk towards 286.