Bitcoin/BTC Daily Price Review (07 Mar 18)

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 had a decent pull back following an approach attempt on the resistance zone between $12,000 and $13,000 and broken the small rising wedge to the downside.

This sets the BTC price up for a potential interim double-top pattern, which could see the price back down into the $8,000-$9,000 range.

However, I still think this price action could be the continued formation of the right shoulder of an inverted head and shoulders pattern.

If the price consolidates further in this prospective right shoulder triangle formation, then the likelihood of the inverted head and shoulders pattern completing is increased (which has a price target of ~$17,000).

Of course a drop below $9,000 could invalidate this set up and would bring the double-top scenario into play.

Volume

Not much going on here, as typical for the last week or so. There was a small spike in apparent selling volume, however, it all remains quiet for now.

Bias

I still favour the long position, especially if the price can continue to consolidate in this area and form a strong base for a move upwards, but am keeping an eye on a break below $9,000 as that would change the structure of the chart and invalidate my current thinking.

Until tomorrow,

Bobby.