TRADE BTC OPTIONS THANKS TO TOPOPTION
For the technical analysis I use primarily:
- Trend lines
- Resistance and support levels
- Classic TA basic formations (triangles, wedges, flags)
- Basic Price Action patterns (pin bar, inside bar, outside bar)
- Fibonacci retracement to determine potential support and resistance levels
The situation compared to last week’s analysis did not undergo many changes. There are only one week to monthly chart closure – ale indications are that trading will close in red, the 3rd month in a row below 450USD.
Previous week brought a correction to the earlier declines that were caused by the scandal around Cryptsy and Mike Hearn decision to leave the Bitcoin project. As we wrote, he called it “a failure”. Price closed above 400USD, but current week brought slightly declines and currently we are trading below.
D1 chart are still inside a correction (from last year highs). Further depreciation is blocked by 3540-360USD support zone. Round 400USD level coincide with 50% Fibonacci retracement (declines after strong November moves). As you can see, Fibo is higly respected by the price. Signals under 400USD will be used to open shorts.
H4 chart shows that price closed in-between 61.8% and 38.2% Fibonacci retracement and the 400USD works as a middle of the range. While the price cannot break above or below those level, we should still see a consolidation.
