10th Feb 2014 - BTC/USD Technical Analysis

So this morning we saw a MASSIVE drop on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. The reason? Trading Exhange Mt. Gox Mt. Gox Mt. Gox is the name of a Japan-based cryptocurrency exchange that was infamously hacked for 850,000 BTC worth roughly $450 million at the time in February of 2014. During July 2010 Mt. Gox formally launched Mt. Gox launched its exchange and price quoting service. It was subsequently sold to French developer Mark Karpelès in early 2011.Prior to its hacking, Mt. Gox suffered from other security vulnerabilities as early as June 2011. On 19 June, 2011, a security breach of the exchange caused the no Mt. Gox is the name of a Japan-based cryptocurrency exchange that was infamously hacked for 850,000 BTC worth roughly $450 million at the time in February of 2014. During July 2010 Mt. Gox formally launched Mt. Gox launched its exchange and price quoting service. It was subsequently sold to French developer Mark Karpelès in early 2011.Prior to its hacking, Mt. Gox suffered from other security vulnerabilities as early as June 2011. On 19 June, 2011, a security breach of the exchange caused the no Read this Term has just announced that Bitcoin withdrawals remain halted.

It was swimming along nicely in the early hours, ranging between 695 and 720 before crashing big time, easily halving it's value (on BTC-e).

Yet despite the huge drop, there was still adherence to the tried and trusted technicals.

Take a look at the hourly chart above. You'll see how it smashed through the lower Bollinger Band, and when that happens - there's usually a high probability that price will quickly retrace back in between the lower and middle Bollinger lines.

As we can see, this hasn't quite happened yet. However, there was a clear bounce off the 50% Fibonacci line, virtually to the pip, and as of writing, price is hovering at the 61.8% level.

Right now the Accelerator Oscillator is still red, but should turn green within the next few hours, hence I anticipate price to rise further this afternoon reaching around 660.

Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.