BTC/USD Technical Analysis – 13th March 2014

Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.

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 continues to test a certain level this morning, so far unable to break it. Will it be broken today?

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

I've performed the Fibonacci study from the major swing low on the 25th of February at 430, until March's high at 698.

Straight away, we can see what's happening. We had an initial retracement and bounce off the 38.2% Fib level on the 8th of March at 595 (circled in blue). Since then however, the 23.6% Fibonacci retracement level is holding firm as a strong resistance at 635, and over the past four days it's been tested over half a dozen times.

As a result, the Bollinger Bands are becoming tighter and tighter, and actually have now reached a horizontal state, where all three Bollinger lines are headed purely eastwards, which is clear proof of consolidation if ever we needed it.

I expect the 23.6% level to be re-tested on more occasions over the next few candles, as we have 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 the Awesome Oscillator turning red. In addition, the Stochastics are heading upwards. However, due to the strength of the resistance at 635, I can't see a break as of yet.

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