Bitcoin (BTC): Daily Price Action (Weds, 28-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 has continued to weaken but could be finding support at the $7,700 area:

A small area of price consolidation has formed at this level, indicating some buy orders stepping in:

BTC is still vulnerable to further downside with a $6,000 visit not being out of the question, but wouldn't expect it to hang around at that level for long.

If the price breaks above this current area of consolidation and above the small descending trendline (red solid line), I expect a small rally to about $8,600 and then a pull back to $7,800 where the support must hold to support an upside scenario.

Volume

There's been a small uptick in average trading volume (exchange: Bitfinex), indicating some strength to the support level ($7,800).

The On-Balance-Volume indicator is also seeing a small uptick (indicating buyers maybe peering out of their shells), but has significant overhead resistance to break through to change the current selling trend.

Watching for an upside break of the descending trendline (thin red solid line).

Bias

Still neutral after being a disappointed bull for the past two weeks. Looking for confirmation of a trend change (to the bull side) or continuation of the downside.

A break below the $7,000 level I think could create a market shock, with significant volatility returning. The market participants (me included) are just sitting on their hands for the moment.

Until tommorrow,

Bobby