Bitcoin Price Analysis: BTC Markets Anemic After Initial BCH Trading

By Bitcoin Schmitcoin

Bitcoin Price Analysis

As discussed in the previous BTC-USD market analysis, the market has begun to test and retest known support and resistance lines on both the macro and micro levels. Since finding its local bottom around $1,800, BTC-USD has paved a fairly clean schematic of support and resistance levels along the Fibonacci Retracement values:

Figure_1 (2).JPGFigure 1: BTC-USD, 6-hr Candles, Bitfinex, Fibonacci Levels Post-bottom

The high $2,600 values (also the 23.6 percent Fibonacci Retracement line) have historic significance in this market because they are firmly established support values. However, if we look at the 6-hr volume trend, we can see that each rebound off the $2,600 values was paired with decreasing volume on every attempt to break support. The volume trend shown above is typically a sign that the market is no longer confident in the higher price values and will ultimately need stronger volume to break new highs.

Zooming in on the most recent test of $2,600, we can see another clean set of Fibonacci Retracement lines paving strong support and resistance values for the current trend:

Figure_2 (2).JPGFigure 2: BTC-USD, 2-hr Candles, Bitfinex, Current Bull Trend

From this perspective, the strong support outlined in Figure 1 …read more

Source: http://bitcoinmagazine.com/