Bitcoin (BTC): Daily Price Action (Sat, 31-Mar-2018)

Daily BTC price review for education purposes only.

Price

Following on from yesterday's review (here) the BTC price is consolidating around the $7,000 level after taking a tumble yesterday.

The coin is trading well into the previously identified support zone and is (currently) respecting the rising trendline (thick, green, ascending).

Despite the reasonably nasty selloff, it hasn't been as dramatic as the capitulative sell off in February of this year. Which means either, the price could put in a higher low (which would be bullish and point to a recovery) or there's more blood to be spilt and another test of £6,000 could be on the cards.

Volume

There's been a reasonably sustained increased volume profile at the $7,000 consolidation area, which lends strength to this price level.

If this volume continues I'd expect this represents value buyers stepping and at least a short term rally upto the overhead resistance of $8,000.

The On-Balance-Volume (OBV) indicator has seen a little recovery indicating relative buyer strength, however needs a more convincing upside break to suggest a trend change.

Bias

I think the Bears are getting tired. I'm currently neutral. If this recent consolidation area can strengthen and hold with continued volume, I'd be then looking for a bullish break and confirmation with a reversal pattern to attempt a long trade, noting the importance of waiting for reversal confirmation pattern to avoid a fakeout trap.

Until tomorrow.

Bobby