Bitcoin (BTC): Daily Price Action (Thurs, 29-Mar-2018)

in #bitcoin8 years ago

This is not financial advice: Do not trade or invest based on this analysis.

Price

Following on from yesterday's review (here), the BTC price broke below the support level of $7,700 and is now trading in the 'light' support zone.

BTCPriceScenarios_290318price1Logo.png

It's looking like there'll be a bit more downside, but keep an eye on the rising trendline support (thick, green, line), as there'll probably be a spike and bounce.

BTCPriceScenarios_290318price2.PNG

If the price can hold above the $7,200 level this could represent an intermediate double-bottom formation, and be the base formation for a price recovery.

I expect increased volatility in this support area.

Volume

As the price falls further expect to see increase in trading volume and watch for a capitulative spike of sell volume, above 20k or 30k (Exchange Bitfinex): this could indicate seller exhaustion.

BTCPriceScenarios_290318Vol.PNG

The On Balance Volume indicator is still looking weak and is nearing lows for this year, suggesting the market may be reaching oversold territory.

BTCPriceScenarios_290318OBV.PNG

Bias

I'm looking for a further fall to about $7,200 and then a convincing up tick in trading volume and then a technical reversal pattern, which upon completion of, I'd consider a long position.

Until tomorrow.

Bobby.

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