BTC/USD Technical Analysis – 27th Feb 2014

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

After a decent northern trend from the 25th through til the yesterday, Bitcoin seems to have lost its momentum.

Let’s take a look at the BTC/USD hourly chart below (click to expand)

I’ve done the Fibonacci study from the low at 430 to yesterday’s high at 590.

Right now, we can see exactly what price is doing – meandering along the 23.6% fib retracement level. Clearly, a period of consolidation has been reached. From the H1 chart above, it’s frankly difficult to tell what price will do next, as the technical are pretty conflicting.

Actually, what I’d expect is for this current wandering to continue for the rest of the day, with price bouncing between 530 and 580. Right now it’s at the very edge of the lower Bollinger band; the Stochastic is approaching oversold territory, and the Accelerator Oscillator has turned green. Most importantly however, it’s sticking to the 23.6% Fib level at 533.

In addition, the last few candles have had large wicks on both sides of the body, further indicating indecision at this current moment in time.