BTC/USD Technical Analysis – 13th April 2014

After last week's minor collapse on 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 following news from China, there's been a decent recovery, with consolidation now coming in to play.

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

I've performed the Fibonacci study from the high at 465 to this month's low at 342. A drop of more than 25% in barely half a week. Painful stuff for bullish crypto coin speculators, but the good news is that the recovery was more than a minor retrace, rising back up to the 78.6% Fib level at 438.

Since then, we've not seem much activity quite frankly, and if we performed a more short term Fibonacci study, as below, we can see how price has just about dropped to the 23.6% level at 417:

It's interesting to note that the 61.8% Fib level from the first chart is at the same location of the 23.6% Fib level from the second chart.

With the Stochastics now heading down from an overbought zone, we may see price hit 38.2% (from the second chart) later today at 403, with 400 providing some support due to it being a psychological whole number.