BTC/USD Technical Analysis – 23rd April 2014

Bitcoin carries on from where it left off yesterday, with certain support and resistance zones continuing to act as barriers for price.

Let's take a closer look at the latest BTC/USD Daily chart below:

I’ve performed the Fibonacci study from the low of the month at 343, until the high of the month at 545.

As I mentioned yesterday, "If we zoom out to the Daily timeframe, to try and observe a potential trend in the making, it’s hard to envisage, since the previous few days tells us something pretty obvious, i.e. a clear pattern here of ranging; it’s vital to pay heed to what the candlesticks on their are telling us."

Of course, the two levels of support and resistance we're talking about are the 23.6% and 38.2% Fibonacci retracement levels, at 497 and 467 respectively. We're talking about candlesticks with small bodies, long upper and lower wicks, price opening and closing very close to each other, etc... i.e. all the classic hallmarks of consolidation.

We do have the Stochastic Oscillator heading down however, along with the Accelerator Oscillator as red, so I'd expect another test of the 38.2% at 467 later today.