BTC/USD Technical Analysis – 7th May 2014

Bitcoin finally manages to break above a strong bearish down trendline which has been restricting price from rising any further

Bitcoin finally manages to break above a strong bearish down trendline which has been restricting price from rising any further for the past week. Could we see the beginning of some serious bull momentum, or is this merely another mirage?

If you remember yesterday I posted the following BTC/USD Daily chart (click to expand):

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

btcusddaily_06_05_2014

For which I performed the Fibonacci study from the low of April on the 11th at 342, until the latest swing high on the 16th at 544, when I mentioned, “I’ve drawn two lines, a bearish red trendline and a horizontal blue support line, I want to focus on these, because very soon, one of these will have to give… the triangle that’s formed is going to be broken this week, that’s a given.” And so it happened this morning, when price exceeded the red trendline, crossing 420, as can be seen below, on the current BTC/USD Daily chart (click to expand):

btcusddaily_07_05_2014

Suggested articles

Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>

With such a break after a multitude of restrictive days for Bitcoin, I believe price can now rise to at least the 23.6% Fibonacci retracement level, for our latest Fib study below:

btcusddaily_07_05_2014_2

I’ve performed the new Fibonacci study from the high of last month on the 16th of April at 545, until the low of this month (yesterday), at 410.

Personally, I am strongly anticipating the Accelerator Oscillator to turn green very soon, almost definitely this week, which will give further confidence in the bulls, because we already have the Stochastic Oscillator in oversold territory, and it’s virtually itching to get out of there. The %K and %D are very much still intertwined, essentially caused by the red trendline preventing price from surpassing.

Put simply, assuming the Accelerator turns green this week – if price doesn’t hit 23.6% at 442 this week, I’d be very surprised.

Got a news tip? Let Us Know