Bitcoin/BTC Daily Price Review (09 Mar 18)

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

Price

Following on from yesterday's review (here?, BTC has seen continued selling pressure and is now trading with the support zone.

The price is also trading below the $9,000 level that potentially invalidates the inverse head and shoulders pattern.

So has the set up failed or is this still a complex right shoulder? At the risk of flogging a dead horse and displaying confirmation bias, it all depends on what happens in the next few candles.

The current candle is looking like a 'hanging man' showing some buying strength in the support zone.

The recovery scenario I see is marked on the chart in green and the capitulation scenario in red.

Volume

The hot topic at the moment, we've seen the long overdue return of trading volume:

I'm looking for this volume to drive some price volatility.

The On-balance-Volume indicator is the real reason I haven't fully given up on the inverted Head and Shoulders pattern as the dips in the OBV were coincident with the support found at the prospective left shoulder, head and now potentially right shoulder:

Bias

I'm looking for a quick recovery out of the support zone to maintain the inverted head and shoulders pattern, however, if the price continues to capitulate, the inverse head and shoulders pattern should be discarded and the next support level is expected to be between $6,000 and $7,000; however, I don't think the price will stay there for long.

So at the very least my 'perma-bull' bias is showing strength!

Note

If you want some mind bending BTC price analysis check out @ctom (here), he's got some good insights.

Until tomorrow,

Bobby.