Bitcoin has been continuing in it’s Bollinger meandering this morning, but look inside the actual squeeze itself, and you’ll notice some familiar technicals.
Let’s take a closer look at the BTC/USD chart on the H4 timeframe below (click to expand):
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I’ve performed the Fibonacci study from the low of this month, on the 1st, at 530 to the high of the month on the 4th, at almost 700.
I’ve drawn a white rectangular box to highlight what price has been doing since the 9th, which is basically bouncing between the 38.2% Fib level at 634 and the 50% level at 614. What’s interesting is that even though price managed to breach this channel on a few occasions, it was never able to close above or below the channel, as suggested by some of the longer upper and lower wicks on the candlesticks.
Indeed, with the Stochastics now pointing down, and the Accelerator along with the Awesome Oscillator having turned red, I expect price to re-test the 50% level at 614 within the next few candles.
We also have the past three candlesticks possessing upper wicks without any lower wicks, thus adding further strength to a few bears, even though the channel will most likely put those to a halt soon enough enough.