BTC/USD Technical Analysis – 8th April 2014
For today's Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term analysis, I'm going to be focusing on the shorter fifteen minute timeframe. I know there are a lot of people who try to scalp Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, here at DC Magnates we try to cater for all types of traders.
So, let's take a look at the BTC/USD M15 chart below (click to expand):
We can see how price reached a week low of 438, since it was a Fibonacci extension of 261.8%, when performing our Fib study from the last swing low to swing high of last week.
Then, if we apply another Fib study to the current swings, i.e. from this week's low of 438 to the week high of 455, as seen below:
It's clear how the market is behaving right now. Clear in the sense there is no clarity, apart from the fact that price is now ranging between the 38.2% Fib and the 61.8% Fib retracement levels.
In addition, price seems to be fixed between the two Bollinger extremes, using the middle Bollinger line as it's centre of gravity. Notice how all three lines of the Bollinger, i.e. the upper, middle and lower lines are all now horizontal, further proof of ranging, and evidence of further ranging, helped by the inconsistency of other indicators.
When such price action occurs, scalpers often use the upper and lower Bollinger lines as entry points, with the middle line as an exit point. Whilst such a rigid approach can land you in hot water on the occasion things don't go your way, it is a solid foundation to base your scalping needs off.
For today's Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term analysis, I'm going to be focusing on the shorter fifteen minute timeframe. I know there are a lot of people who try to scalp Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, here at DC Magnates we try to cater for all types of traders.
So, let's take a look at the BTC/USD M15 chart below (click to expand):
We can see how price reached a week low of 438, since it was a Fibonacci extension of 261.8%, when performing our Fib study from the last swing low to swing high of last week.
Then, if we apply another Fib study to the current swings, i.e. from this week's low of 438 to the week high of 455, as seen below:
It's clear how the market is behaving right now. Clear in the sense there is no clarity, apart from the fact that price is now ranging between the 38.2% Fib and the 61.8% Fib retracement levels.
In addition, price seems to be fixed between the two Bollinger extremes, using the middle Bollinger line as it's centre of gravity. Notice how all three lines of the Bollinger, i.e. the upper, middle and lower lines are all now horizontal, further proof of ranging, and evidence of further ranging, helped by the inconsistency of other indicators.
When such price action occurs, scalpers often use the upper and lower Bollinger lines as entry points, with the middle line as an exit point. Whilst such a rigid approach can land you in hot water on the occasion things don't go your way, it is a solid foundation to base your scalping needs off.