Bitcoin Trading : BTC/USD Technical Analysis – 18th June 2014

Analysis provided by Ashton Fraser, learn more about his trading strategies at the Lasers forex forum.

After last week's fall to 560, it seems the bears have hit some firm support, which could prove key in determining the path of price over the course of the next few weeks.

Over the weekend, I posted the following BTC/USD Daily chart:

Where I mentioned, "It was the 50% resistance (marked in red), which has been preventing price from continuing its bullish momentum we witnessed in May. This has resulted in a fall to the 38.2% Fib level at 565, marked in blue. So here we have the reason - the 38.2% Fib on the Weekly hold more water than the 23.6% Fib on the Daily, enough speculators have continued to hold on their shorts until this Weekly Fib, at the very least. This is especially true as 38.2% on the Weekly isn't too far below 23.6% on the Daily, so the progression to this level was natural."

And that's as far as the price managed to reach, as a significant number bearish speculators exited, resulting in a bounce of 38.2% at 565. The fact that support has formed here, is unsurprising, given the fact there are so many bullish technicals on the weekly timeframe still at play, such as the Stochastic Oscillator heading north, both Bill Williams' indicators (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) staying green, along with the Parabolic SAR dots beneath the candlestick, as we can see below on the latest Weekly chart:

As of this morning, 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 hit a week high at 607. Will the bulls manage to rise even further? It looks unlikely this week, since 607 represents a confluence of two key Fibonacci resistance zones, if we zoom into the Daily timeframe.

Firstly, 607 is located at the 23.6% Fib level from our longer term study which I performed over the weekend (marked in red):

Secondly, 607 is also located at the 50% level if we perform a shorter term Fib study from this month's high until this month's low (marked in red):

Consequently, this resistance may prove too strong for a further hike this week, although we can't ignore the Stochastics potential to cross up from a (relative lowly) position, which could entail some ranging over the next few days.

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