ForexMinute.com — The Bitcoin price is rising consecutively from past few days, and has broken many strong resistance levels. A part of this upsurge has been credited to the news related to Bitcoin Investment Trust, a swap exchange company that recently was given permission to run as a publicly traded Bitcoin fund.
Speaking of the last 24 hours, Bitcoin market has once again topped to a new intraday peak — this time at 294 — but was quickly brought back to near 275 as a part of price correction. The price however has stayed around 276-280 area for too long and is now consolidating in absence of any sharp trades. As the market enters the Bitcoin auction date tomorrow, the price is hopeful to stay below 290 for the rest of the day, barring any manipulative movements.
BTC/USD 4H BitFinex Chart
Despite the dump, the BTC/USD is still trending in a bullish bias. As we can notice the chart above, the Bitcoin price is way too higher than its 50H MA, while the RSI is situated near 65 — clearly a buying area. On the other hand, the MACD blue curve has pushed itself way too above the normal line and is currently hinting to dive a little below the saffron signal curve. It overall indicates that price is currently attempting a short weakness/consolidation before deciding the further course of its movement.
The way we see it, the price is poised to stay below 290 for now until and unless the Silk Road Bitcoin auction is passed. Traders might want to hold onto their orders until the manipulative moments are passed. Even though, some influential actors might try retesting the previous peak at 294, clearly sighting the next upside risk near 300. We though believe 290 to be a decent exit point, if you have entered near 275.
Setting your stop losses near in 270-275 area will ensure a timely exit in case the bullish bias invalidates.
The Bitcoin’s rally in last few days seems to be less reflective on the altcoins, barring Litecoin and Darkcoin which have been consolidating smoothly in last 24 hours. Dogecoin however has dropped more than 2.5% within the same time span.