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The weekend brought pain for Bitcoin, but that was always on the cards. My Fridays Bitcoin price technical analysis Palpable Strain concluded on a bearish note saying that a close below $286 could bring in further decline, and as can be seen, the cryptocurrency did slump intraday to $276.57 before taking support from near the previous consolidation level of $275.

Bitcoin is currently trading at $281.26.

Now, the important question that must concern the trading community is: Is this relief from the support level for real or is it a trap? This analysis will aim to provide some answers.

Image: https://www.tradingview.com/x/qpzvELmb/

Bitcoin Chart Structure The recent decline from $298 to $276 diminishes the probability of an immediate higher top. A careful observation of the above-presented daily BTC-USD price chart reveals that Bitcoin is in a descending triangle a bearish technical chart pattern which successfully matures 60-70% of the time. The Resistance has been marked by the downward sloping red line while the Support is horizontal.

Fibonacci Retracements As stated previously many times, the 38.2% Fibonacci retracement level of $280 did provide aninterim cushion to the Bitcoin. A decisive breach below this should set the next target at $268 the 50% retracement.

Moving Average Convergence Divergence The Histogram has sunk lower in the negative territory as MACD extends its slide. The latest values of Histogram, MACD and Signal Line are -2.3278, 3.9254 and 6.2531 respectively.

Momentum The Momentum indicator has a present value of -7.7500.

Money Flow Index As stated in theprevious analysis, the divergence between MFI and price has brought losses to Bitcoin. The MFI now reads 59.7792.

Read more:
Bitcoin Price Technical Analysis for 3/8/2015 Whats ...