BITCOIN PRICE DISCOUNT OPPORTUNITIES

In character with the pump-and-dump market rhythm induced by the Fed’s five-year QE program, markets resumed their usual direction after the FOMC statement last night. A mediocre Fed statement saw the Bitcoin price drop to an intra-week low and then stall. Stocks and the Dollar are up with Gold and Bitcoin holding at their lows.
Bitcoin Price Down – But Not All The Way
The Bitstamp chart shows how the Bitcoin price, last night, dropped to a new intra-week low. However, instead of reversing at the lower channel trendline, price had reversed at a 1.618 Fib extension level.
The reversal at a Fib level, rather than at the within-reach lower trendline – overlapped by aweekly pivot S2 level – is odd. In case we suspect that this is The Reversal – it doesn’t appear to be. No significant target was hit, nor had price action displayed the hallmarks of reversal: impulsive, thrusting and hauling distance. Advance to the channel upper trendline (and beyond) will clarify this matter.
Failure of price to regain altitude will maintain the downward biased view and the targets that await at $439 (lower trendline) and $412 (2.618 Fib extension of the first wave down).

This post was published at Crypto Coins News on 18/09/2014.