BTC/USD Technical Analysis – 27th 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 approaches very close to its low of the past fortnight, at 555, and with many technicals indicating a break of this zone, there would have been a strong possibility of a break this week, was it not for one major caveat.

Let's take a closer look at the BTC/USD chart on H4 (click to expand):

We can see how the past few candles have been very bearish, with long, strong bodies. Also, right now, both Bill Williams' Oscillators, namely 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 have turned red. Finally we have the Stochastics crossing down, far from oversold territory.

I would have been very confident of a break past 555 quite frankly, was it not for a major support line, which isn't on the above chart. For that, we need to zoom out to the Weekly timeframe. Click below to expand:

I've performed the Fibonacci study here from virtually the lowest point on Bitcoin, to the all time high, when it reached those crazy levels above 1000 back in late November last year.

Immediately, we can see why price will struggle to push beyond 550, as it's the 50% retracement level (circled in blue). This is a major support/resistance area and right now, and really, it would be foolish to predict a drop beyond this point, unless there are even more powerful reasons for this to occur (e.g. major negative press for bitcoin).

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