Bitcoin/BTC Daily Price Review (11 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 reacted to the overhead resistance at $9,500 (represented on the charts by the previously broken downward trendline (red-dashed) and the horizontal support at this level which is now acting as resistance (black-dashed)) and has pulled back to about $8,500.
BTC is back to trading in the (green) support zone (approximately between $8,000 and $9,000):
For it to have a chance of breaking back to the upside, the price needs to maintain the support level at $8,400 (short green horizontal line).
If it can do that, I expect another test of $9,500. If it can't hold the $8,400 level then I expect to see further downside, sub-$8,000.
Volume
The return of trading volume looks to be sustained, rather than just a blip, which is good for BTC traders, although it is beginning to roll over a bit, which again is good because any recovery should be on the back of relatively modest but sustained volume, so not to get dramatic price swings.
The On-balance-Indicator is as expected. If the OBV can get back above the previous support level (horizontal dashed line), then it would indicate supportive accumulation and strengthen a price move north.
Bias
The price is looking a bit delicate at the moment, due to the significant overhead resistance and failure to recover quickly (so the bear scenario target of $6,000-$7,000 is becoming more credible); however, the price currently appears to be holding in the support zone (i.e. there wasn't a 'waterfall' sell off).
I'm looking for a bounce off $8,400 and another test of $9,500, with the backing of a bit of trading volume, then we might see another run.
Until tomorrow,
Bobby.
For future viewers: price of bitcoin at the moment of posting is 8653.40USD
Cool, following you. Whats your current favorite coin/token?
Other than BTC, I'm favouring Litecoin and Monero, both are looking like they have relative strength. I have many others but are very speculative. What about you? what are your preferred coins at the moment?