Bitcoin has been ranging for the past few hours, a clear direction has yet to be determined for the week.
Let take a look at the four hour chart below (click to expand).
After a somewhat bullish start to the week, (marked with a blue arrow) where price rose from 572 to 645, there has been some slightly bearish consolidation.
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Earlier on from the end of last week, I’ve done the Fibonacci study from the 14th’s low at 515 to 14th’s high at 688. We can now see which Fib levels price has been reacting to.
More pertinently for today’s analysis however, we can see how price has been following the direction of the middle Bollinger line, using that as a natural line of resistance. This, coinciding with the fact that the Stochastics have been creeping slowly downwards without being oversold, implies that there still could be some further downwards movement, albeit slight due to the low volume right now.
However, the 50% Fib level actually seems to be providing some support and with the Accelerator Oscillator turning green a couple of candles ago, we could see price however between 600 and the middle Bollinger line for the rest of the day.
Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.