Price has been rising steadily on BTCUSD this morning. Take a look at the chart below (click to expand).
We’ll see how despite the downtrend from last week, price, after touching the lower Bollinger band, has literally bounced off the 50% Fibonacci retracement level at 564, all the way to the 61.8% at 630.
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The question is, is this a temporary bounce or will Bitcoin continue to traverse the overall path it’s been following over the past few weeks.
Well, if price maintains it’s head above water, (the 61.85 Fib level in this case), and Stochastics can turn in the next few hours, I wouldn’t be surprised if hit eventually hits the Upper Bollinger Band by the end of tomorrow, as we can see how the Accelerator Oscillator and the Awesome Oscillator have both turned green. Also, for the first time in a long time, the middle Bollinger line has turned slightly upwards.
On the other hand, the 50% Fib level provides a strong support, after it’s been tested twice already, so if price did come down there again, expect another relatively strong bounce.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.