Bitcoin’s alignment of firm bullish technicals (as discussed yesterday), have proven strong enough to take the crypto-coin’s value soaring over the past 48 hours.
In my analysis on BTC/USD yesterday, I performed the following Fibonacci study (click to expand):
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Where I mentioned, “how much strength do these bulls have? Well, due to the recent and consistent bears, it’s difficult to imagine we’re going to see a raging bull – however, what I think may well occur is a rise to at least 478. I say that because of what’s happening right now on the D1 chart (above). I’m very confident we’re going to be seeing a rise to the 38.2% level very soon (marked in blue). Indeed, a 50% retrace at 520 may be a viable target as well this week, due to such a decent alignment of the technicals.”
However, caution needs to be exercised, since if we zoom into the current hourly chart below (click to expand):
We can see how price has retraced to the 23.6% Fib level, and it’s only a matter of time before price corrects itself with regards to the Bollinger Bands. The good news is that 23.6% is located just above 500, which may provide some support due to it being a psychological whole number.