This morning we’ve seen a slow but steady decline in price on BTC/USD.
Lets take a closer look at today’s M15 chart. (Click to expand.)
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We’ll see that price started heading south as a number of technicals came into play. Firstly, notice the long bullish candle that closed significantly above the upper Bollinger band? (at around 634, marked with a blue arrow). Look at what happened on the next candle. An immediate bearish candle, without any wicks, with it’s body being almost as long as the previous candle.
Then in the following couple of candles, we can see how the Stochastics turned around whilst being undersold, and the Accelerator Oscillator and the Awesome Oscillator had turned bearish as well.
As a result, price fell down until the afternoon, where it hit a low of 605. Interestingly, this was yet another major closing beyond the (this time lower) Bollinger band, marked with a green arrow. Unsurprisingly, price reacted and bounced back up to the 23.6% Fib level.
However, the overall trend is still bearish, so I would expect price to flicker between the 38.2% Fib level and today’s low for the remainder of the day, before possibly breaking the 605 low later this evening.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.