Yesterday morning we saw a steady rising on BTC/EUR, with some consolidation now coming into play.
Lets take a look at the intra-day chart below (click to expand).
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We can see how price started the 17th of Feb at a low of 411, before heading north consistently for a few hours, reaching a high of 470. If we examine that high closer, we’ll see that the technicals pointed to a slight downturn at the very least.
Firstly, price had been hugging the upper Bollinger line for a few hours. When this happens, it’s important to look at other technicals that could indicate a reversal. At 12:45 GMT, you’ll notice that Stochastics had turned round, starting to head down whilst being undersold, and both the Accelerator Oscillator and the Awesome Oscillator had turned red.
As a result price did fall slightly, hitting the 38.2% Fib retracement level at 6:30 GMT this morning, before bouncing off the 23.6% level a couple of hours later.
I expect further consolidation for the remainder of the day, with price hovering between 38.2% and 23.6% for the next few hours.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.