Bitcoin (BTC): Daily Price Action (Tues, 27-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 down through the support level at ~$8,300 on the back on a small uptick in volume.

This leaves the price (currently trading about $8,000) vulnerable to a further downward move, with support beginning at $7,000.

Volume

There was modest spike in trading volume on the break of the support level and at the intermediate support level (@~$, 8,000), giving some validation to the move.

The On-Balance-Volume indicator is about as low as it's been for the past year, suggesting the sellers could be nearing exhaustion.

Bias

My bullish bias has turned somewhat neutral, as I wasn't expecting the breakdown.

I can see further downside move nearing the support zone, which could form the third bottom of a triple bottom scenario.

If this does occur, I'd be more encourage if the price didn't drop below the previous low (~$7,200), a recovery formation could then be on the cards.

Unfortunately, however, a quick recovery appears to less likely based on the current price action.

The Bulls have been defeated for the moment.

Until tomorrow.

Bobby.