BTC/USD Technical Analysis – 10th April 2014 – Digital Currency …
Bitcoin falls to 400 following multiple pieces of bad press worldwide, including but not limited to:
– Huobi, one of the world’s largest bitcoin exchanges, announcing they’ve received notice from their bank, ICBC, that they will be closing Huobi’s account next week.
– BTCTrade, another Chinese bitcoin exchange announcing likewise.
– The National Australia Bank is to dissolve any relationship with digital currencies, citing there’s too much risk involved.
All this bad news means one thing, further bears for Bitcoin and altcoins. Let’s check out the latest BTC/USD hourly chart below (click to expand):
As I explained in my previous analysis, there was a Bollinger Squeeze in place, marked with a white ellipse. There’s always an expansion after a squeeze, often sparked by some major news, such as those mentioned above. Consequently, price fell to 400, which, due to it being a psychological round number, has provided some support for the meantime.
Take a look at the two candles circled in blue; both of them opened and closed below the lower Bollinger band, a rare price action occurrence. Unsurprisngly, price has since tested the 23.6% Fibonacci retracement level. With the Stochastics heading north and the AC & AO both red, I expect further tests within the next few candles.
Source:
BTC/USD Technical Analysis – 10th April 2014 – Digital Currency …
See which stocks are being affected by Social Media
