Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
After reaching almost 700 yesterday, Bitcoin has been slowly moving sidewards.
Lets take a closer look at the intra-day M15 chart on BTC/USD (click to expand:
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I’ve done the Fib study from last week’s low at 430 to yesterday’s high at 697. Since then, price movement hasn’t really done much, except for meandering slightly downhill for the past few hours. 700 is a psychological round number, so it’s of no surprise price hasn’t broken this area yet.
What we do know is that price adhered to Fibonacci again, coming down to the 23.6% Fib retracement level at 634, before a tiny bounce.
However, this 23.6% level is going to be an important level very soon. If we zoom into M15 further, we’ll see how the Stochastics are undersold, yet having crossed downwards, plus the Accelerator Oscillator and Awesome Oscillator have both turned red:
These technicals tell me price is going to re-test that level again, but it remains to be seen if 23.6% will be broken, since there isn’t much momentum right now. I expect price to remain between yesterday’s high and 23.6% for a while yet.