Whilst the bears continue to loom over Bitcoin, a certain support zone is somehow, despite the bad press coming from China, managing to hold its own.
Let’s take a closer look at the latest BTC/USD H4 chart below (click to expand):
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During my previous analysis on Bitcoin, I had mentioned, “I feel there could well be a break below 444, for a few reasons, since we have the Stochastic Oscillator heading south from an overbought position. We also have the Accelerator turning red, along with the Awesome Oscillator. I really doubt 50% (444) can hold for much longer, and if we don’t see a drop to the 61.8% Fib by the weekend (marked in blue), I’d be surprised.”
Well, surprised I was, because as we can see, there was no break, price has been ranging over the weekend. Indeed, the fact that 50% has held, is a testament to the burgeoning confidence in Bitcoin as a potentially viable currency, as opposed to merely a “pump and dump” monetary football.
Right now, price is hovering just above 50%, marked in white, and seeing as though the technicals are in total conflict with each other, I’d expect further consolidation throughout the day.
A word of caution, this could be a temporary pause in market movement, since usually we’d have the Bollinger Bands squeezing and converging, but this is not happening right now, in fact they’re still heading south. We may see this change over the next 24 hours, but for now, I’m still not comfortable with that support.