BTC/USD Technical Analysis – 20th Feb 2014

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

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 has this morning made a significant drop, finally ending the Bollinger Squeeze we talked about earlier.

Lets take a closer look at the hourly chart below (click to expand).

We can see how price had just closed above the Upper Bollinger line this morning (marked with a blue arrow), reaching a high of 616. Since then, it's been falling pretty fast. The immediate candle after the bullish one that closed above the upper Bollinger dashed right down below the middle Bollinger line, a clear indication of a break.

That, given the fact that Stochastics had now crossed over, heading South whilst being undersold, plus 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 and Awesome Oscillators changing red, told us that a strong bearish trend was on the way.

Price dropped all the way until 575, where it's now hit some support and rose until the 61.8% Fibonacci level, literally to the pip (as happens so often). However, Stochastics, AC and AO were all still very bearish, hence price immediately fell down again, stopping at the previous low at 575.

In fact, 575 has been tested already three times in the space of a few short hours, thus giving more credence to this support area, however it's unclear how long it will be able to hold at this level, as if we analyze higher timeframes, there are more hints of bearishness.