Bitcoin continues to rise this week, once again testing a key Fibonacci retracement, which thus far, is proving to be a fairly consistent obstacle.
If we recall yesterday’s analysis, I pointed out how “there will be yet another test of 23.6% this week, because I’m seeing signs from certain indicators, for example, we have the Stochastic Oscillator approaching oversold levels, whilst the Accelerator Oscillator has just turned green.”
So let us take a look at the latest BTC/USD Daily chart below.
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I’ve performed the Fibonacci study from the high of the month on the 16th at 545, until the low of this week on Monday, at 413.
We can see how price has risen to test the 23.6% Fibonacci retracement level at 444, testing it a few times. As we know, the start of this retrace was initiated by some classic candlestick price action such as dojis and spinning tops, but as I explained yesterday, “the problem is that 23.6% is not allowing price to pass, and we could see this battle continue for a few days to come.”
So this is still where I stand. However, it’s very intriguing to note that two major indicators are coming in line with a potential break of 23.6%. Firstly, in addition to the Accelerator Oscillator, the Awesome Oscillator this morning turned green, and secondly, the %K line on the Stochastic has started to creep upwards – it’s very likely the %K line shall cross the %D line by tomorrow. If so, I believe 23.6% won’t be able to hold, and we could see a rise to the 38.2% Fib line at 463.