Bitcoin (BTC): Daily Price Action (Thurs, 29-Mar-2018)
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.
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.
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.
The On Balance Volume indicator is still looking weak and is nearing lows for this year, suggesting the market may be reaching oversold territory.
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.