BTC/USD Technical Analysis – 1st May 2014

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 rise this week, once again testing a key Fibonacci retracement, which thus far, is proving to be a fairly consistent obstacle.

If we recall yesterday's analysis, I pointed out how "there will be yet another test of 23.6% this week, because I’m seeing signs from certain indicators, for example, we have the Stochastic Oscillator approaching oversold levels, whilst 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 has just turned green."

So let us take a look at the latest BTC/USD Daily chart below.

I've performed the Fibonacci study from the high of the month on the 16th at 545, until the low of this week on Monday, at 413.

We can see how price has risen to test the 23.6% Fibonacci retracement level at 444, testing it a few times. As we know, the start of this retrace was initiated by some classic candlestick price action such as dojis and spinning tops, but as I explained yesterday, "the problem is that 23.6% is not allowing price to pass, and we could see this battle continue for a few days to come."

So this is still where I stand. However, it's very intriguing to note that two major indicators are coming in line with a potential break of 23.6%. Firstly, in addition to the Accelerator Oscillator, the Awesome Oscillator this morning turned green, and secondly, the %K line on the Stochastic has started to creep upwards - it's very likely the %K line shall cross the %D line by tomorrow. If so, I believe 23.6% won't be able to hold, and we could see a rise to the 38.2% Fib line at 463.