Bitcoin fell again today, this time about 7% but it does look like we have found some support in this area. Here is the daily chart:
Comment: Whats positive here is that we closed at the support level around 16700 and we also touched the bollinger band median and the 20 day moving average. All of these things are potentially positive at this stage. Now, what is going to happen on thursday then? Well, lets have a look at the hourly chart, because I do have a pattern to show you there. Here it is:
Comment: Here we can see that we have formed a head and shoulder reversal pattern and that could indicate that we will start moving back up again. We have broken out to the upside on the hourly chart, but that is not a super strong indicator.
Now, what if Bitcoin will continue to fall even more, what support level are we looking at then?
If you look at the daily chart again you can see that there is a ascending trendline and at this time that is crossing the area of 13600 so that could happen next.
On the other hand, if we are going to the upside, the old ATH is the next target which is around 19800 here on Bitstamp.
Happy trading!