Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
After hitting almost 700 on the 5th of March, Bitcoin seems to have consolidated for the time being.
Taking a closer look at the intra-day M30 chart on BTC/USD, we can see how price fell down from 697 (March’s high), until a low of 635.
We can see how at just below 700, a lot of the technicals had bearish tendencies, and as a result, in conjunction with the fact that 700 is a psychological whole number, we saw a small drop:
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The area where I’ve marked with a blue ellipse is where these technicals amalgamated to provide a sufficient energy to move down. We can see how the Stochastics were overbought and had crossed down, and both the Accelerator Oscillator and Awesome Oscillator had turned red.
Zooming out and looking at the H4 chart, we can see where price fell retraced to – the 23.6% Fib level, literally to the very pip, at 635:
However, if we then apply yet another Fib study to this retracement itself on the M30 chart below, we’ll see how price, after bouncing off the 23.6% level (from the H4 chart above), then tested the 38.2% Fib level (see below), on three separate occasions at 658, within a space of 14 hours, circled in blue:
Right now we are seeing a Bollinger Squeeze in play, so we await further confirmation of more technicals to give us an indication as to how soon the expansion may come.