Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
I mentioned, “…just above 38.2%, we have the 600 price mark. With the Accelerator Oscillator now turning green and the Stochastics approaching oversold territory, I expect there to be a bounce off 38.2% / 600 very soon.”
Today’s chart shows exactly that. Take a look at the BTC/USD H4 chart below (click to expand):
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Like yesterday, I’ve performed the Fibonacci study from the low of last month, on the 25th of February at 430, to the high of this month on the 4th, at 698.
We can see how price bounced off the 38.2% Fib level literally to the exact pip, something which often occurs in Forex trading, and is occurring often in digital currency trading as well. This is no coincidence of course, as many traders use these levels, hence the reason to the price reaction at these points.
Right now however, we’re in the midst of a battle between bulls and bears. The middle Bollinger band along with price action is telling is a southern movement is happening, whilst the Stochastics, Accelerator and Awesome Oscillators are all informing us of the opposite. So we have conflicting technicals, which usually indicates market indecision.
I expect price to fluctuate between 600 and 630 for the rest of the day.
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