BTC/USD Technical Analysis – 8th May 2014

Continuing on from this week’s analysis concerning the potential rise of Bitcoin, price has almost reached the retracement level I

Continuing on from this week’s analysis concerning the potential rise of Bitcoin, price has almost reached the retracement level I talked about yesterday. More technicals have come into alignment today, and it’s now a matter of price fulfilling its potential.

In yesterday’s BTC/USD analysis, I posted the following chart:

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btcusddaily_07_05_2014_2

For which I’ve performed the Fibonacci study from the high of last month on the 16th of April at 545, until the low of this month (Tuesday), at 410. I was very forthright in my opinion, explaining, “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. 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.”

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The first part of my prediction has come true, i.e. the Accelerator turning green, the second part is coming to fruition, i.e. the Stochastics now every so slightly beginning to heading north, and the third part is also on the way, as price is close to the 23.6% Fibonacci retracement level at 442. We can see all this in action by way of the current BTC/USD H4 chart below (click to expand):

btcusddaily_08_05_2014

You’ll also notice that the Awesome Oscillator has just turned green as well, a welcome surprise, since usually the Accelerator precedes the Awesome. However, today’s candlestick is a doji, i.e. price, even though it has fluctuated, is currently residing at its opening price (or closing price of yesterday). Of course, it wouldn’t be wise to make assumptions until the candle has closed, so in theory the AC could still change before the day’s end.

Thus, I continue to hold that price shall hit 23.6% at 442 by the end of the week, as long as the chart’s technicals adhere to my aforementioned conditions.

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