BTC/USD Technical Analysis – 15th April 2014

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'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.

, I performed the following Fibonacci study (click to expand):

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.