BTC/USD Technical Analysis – 9th May 2014

As we have been discussing almost all week, Bitcoin is threatening to rise to a certain resistance level – most

As we have been discussing almost all week, Bitcoin is threatening to rise to a certain resistance level – most importantly, one of our conditions which I stated yesterday has been fulfilled, giving me great confidence in the anticipated rise.

During yesterday’s analysis, I posted the following chart (click to expand):

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btcusddaily_08_05_2014

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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, where I mentioned, “The first part of my prediction has come true, i.e. the Accelerator turning green… You’ll also notice that the Awesome Oscillator has just turned green as well, a welcome surprise, since usually the Accelerator precedes the Awesome…. 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.”

Indeed, despite the slight drop yesterday, both the Accelerator Oscillator and the Awesome Oscillator closed the day as green, giving me the green light (pardon the pun), to state with confidence that I strongly expect the price of Bitcoin to reach at least the 23.6% Fibonacci retracement level very soon, probably over the weekend. And after yesterday’s small bear candle, price is now making some headway, as can be seen by way of the latest BTC/USD Daily chart below (click to expand):

btcusddaily_09_05_2014

The reason why I’m still sceptical about price hiking even higher than 23.6% at 442 just yet is due to a number of other technicals such as the Parabolic SAR dots above the candlesticsks, the Bollinger bands heading down, and perhaps most pertinently, previous price action, in so far as the sine wave that’s been occurring over the past fortnight between the current low and 23.6%.

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