BTC/USD Technical Analysis – 2nd April 2014

Bitcoin, as predicted, continues to meander between two key support and resistance levels. How long will this pattern continue? Let’s

Bitcoin, as predicted, continues to meander between two key support and resistance levels. How long will this pattern continue?

Let’s take a closer look at the BTC/USD chart on the H4 timeframe (click below to expand):

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btcusdh4_02_04_2014

I’ve performed the Fibonacci study from the high of last week at just below 590 until the low of March at 445.

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We saw how yesterday price managed to test the 38.2% Fib retracement level (circled in red), which was also a psychological round number of 500, before dropping to the 23.6% Fib level at 480.

Then, I mentioned in yesterday’s Bitcoin technical analysis that, “with the indicators still all in agreement concerning the bulls, I still expect price to test the 38.2% / 500 line again later on.”

Indeed, this is exactly what happened this morning, as circled in yellow.

I expect this current pattern to continue, for the next few candles. The resistance at 500/38.2% just keeps growing in strength, so we’ll very likely see a test of the 23.6% Fib level at 480 later today, especially given the fact we have the Accelerator Oscillator as red, whilst the Stochastics are approaching overbought levels.

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