Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
Bitcoin has been struggling to push below 620 since the 14th of March, but that might be about to change today.
Let’s take a closer look at the BTC/USD H1 chart below (click to expand):
I’ve performed the Fibonacci study from the low of last week at 595, until the high of last week, at 641.
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We can see how price initially pulled back to the 61.8% Fib level at 612 (circled in blue). Since then however, it’s been meandering between 23.6% and 50% for the past few days, as indicated by the white rectangle.
However, zooming into the chart, we can see what’s happening right now, and what potentially is about to happen
Prior to the current candle which is still forming of course, the three previous candles closed as bear candles. In addition, we now have the Stochastics heading south, and the Accelerator and Awesome Oscillators are now red.
Will this momentum prove strong enough to break 50%? Hard to say right now, since 50% has already been tested on three occasions. Another factor which could prove decisive in whether there’s a break or not is the location of price right now with respect to the lower Bollinger band. Price is actually below this line, which adds further strength to the possibility of another bounce off 50%.
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