Bitcoin/BTC Daily Price Review (12 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 is trading above the $9,500 level that we pencilled in as the first overhead resistance level since taking a dive into the support zone (green area):

Critically, the price held the previous low at $8,400 level that was acting as intermediate support (a close below this level I suspect would have led to a further sell off):

There are double tops, bottoms and triangles all over the place at the moment, but focusing on the key levels of support and resistance gives clarity to the charts.

The key levels (I'm watching) are:

$11,800 (strong overhead resistance level)
$9,000 (intermediate resistance, now support)
$8,400 (recently held support)

Volume

I expect the volume to continue to die down after the flurry of selling (perhaps indicating the sellers are exhausted). Settling down to a trading range between 6k-10k (on bitfinex) would support a controlled price movement.

The On-Balance-Volume (OBV) indicator continues to strengthen following the recent dip (indicating relative buyer strength). It'll be interesting to see if OBV can get above the broken support level (green dashed line) and then the descending resistance line (Red solid):

Bias

The price didn't recovery as quickly out of the support zone as I expected; however, given its current trading level, some further up side is expected.

If the price can close above the $9,500 level for the next few days, I would expect a resumption of the northwards move.

There's still an imperfect inverted head and shoulders pattern on the table which if it finally completes, sets a price target of $17,000; but due to the significant overhead resistance beginning at $11,800 this will be a struggle for BTC at the moment.

Until tomorrow,

Bobby.