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):
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.