BTC/USD Technical Analysis – 10th March 2014

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

Over the weekend we saw a firm rise on the most popular digital currency, 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, until this morning, where some swift bears took over.

Let's take a closer look at BTC/USD on the hourly chart below (click to expand):

I've performed the Fibonacci study from March's low at 595 until today's high, at 640. If you look at the 7am GMT candle, it closed just above the upper Bollinger band. Of course, price has a tendency in general to remain within the bands, but this is nowhere near enough of a reason for us to suspect a retrace (nevermind a reversal). However, by the time of the next candle, both the Accelerator Accelerator An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he Read this Term Oscillator and Awesome Oscillator turned red, informing us of some bears coming into play. Indeed, on the very next candle, the Stochastics had crossed down whilst being undersold, with that candle bearing absolutely no lower wick, another sign of bearish strength.

Since then, price has continued to fall, reaching the 50% level, before bouncing back up to the 38.2% Fibonacci retracement level, where it is currently residing. With all the indicators still implying there's room for more southern movement, I expect price to re-test 50% very soon (at 618).

However, there's some support not much further down, as can be seen via the trendline below, so it will be interesting to see how price reacts at that point.