BTC/USD Technical Analysis – 24th Feb 2014

Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term has fallen this morning, but some technical support provides a little hope for the bulls.

Lets take a look at the BTC/USD hourly chart below (click to expand).

We saw how price reached a high of 630 over the weekend. That was exactly 24 hours ago. Since then, price has done nothing but drop until this morning, where it reached a low of 558.

I've done the Fibonacci study from the low of the 21st to yesterday's high, the most obvious place to do the study, especially on the hourly chart. What's even more obvious is what level price stopped at this morning. The 61.8% Fib retracement level, circled in green. Surprise, surprise. Well, not exactly.

Besides being an important Fib level, there are other technicals coming into play as well. Firstly, take a look at the Stochastics (10,6,6). Check out how underbought/oversold they are, plus they've now actually crossed over and heading upwards. Secondly, the Accelerator Accelerator An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he An accelerator or startup accelerator is defined as fixed-term programs that look to foster investment, connections, sales, and education to kindle growth in a project.Most commonly this effort constitutes a public pitch event, demos, and other forms of marketing. Startup accelerators are most commonly associated with Silicon Valley, a global hub for investing and fintech.Startup accelerators however are a global phenomenon that privately funded as an investment fund. This nature of investing he Read this Term Oscillator has also turned green.

Whilst these are not enough of a reason for price to now start shooting north, at the very least we're going to have some fluctuation, probably for a few hours yet, between the 61.8% and 38.2% Fib levels.