NMC/BTC Technical Analysis – 4th March 2014

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

As I discussed in my analysis last week, Namecoin vs 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 had been pretty much static for a number of hours, as there was a support line which was offering some hindrance. Indeed, that support held strong for the following few days, as it was also a psychological number, but, as I explained, price was always likely to fall, due to the bearish indications on higher timeframes.

And fall it did. Throughout yesterday, price fell like a rock, barely caring for any retraces. Take a look at the NMC/BTC hourly chart below:

I’ve done the Fibonacci study from last week’s median high, at the aforementioned 0.006, until yesterday’s low at 0.00525.

And concerning that very candle which produced the low of 0.00525, it’s perfectly placed for a potential reversal. You’ll notice how the entire body of the candle opened and closed below the lower Bollinger line. In addition, both of its wicks are extremely long, it’s almost a doji candle. Dojis are great candles to look out for when seeking any possible reversals. Also, we had the Stochastic Oscillator just about crossing over, whilst being underbought/oversold.

In the following few candles, both the Awesome and 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 Oscillators turned bullish, further fuelling the reversal. Price then hit the 61.8% Fib retracement level (circled in red) to the pip at exactly 0.00572 before coming down to the 38.2% Fib level (circled in blue), and then pushing up again – this time beyond the day’s high at the time at 61.8%.

If we zoom out and take a look at the H4 chart, we’ll yet another major reason for the reversal at 0.00525, namely a strong trendline:

This, with all the above technicals I’ve mentioned, meant that a retrace was very likely indeed.

Right now price is around 0.00585, but with the AC having turned red a couple of candles ago on the hourly, price will probably come down to the 61.8% Fib level, before rising yet again, due to the current strength of the Awesome and Stochastics still looking bullish without being in overbought territory.