Bitcoin Price Analysis 15/3/2015 – Inevitable Bounce!

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Bitcoin price continued to move along the $285 level which has become a critical support level after March’s brand new bullish wave. Throughout today’s trading sessions, bitcoin has been trading near $285 and a bigger trading volume is indispensable before we can see the bulls take control of the market again.

Let’s talk a look at the Bitfinex 4 hour (BTC/USD) chart from tradingview.com and plot the William’s Alligator indicator accordingly (look at the below chart). We can conclude the following:

• As per the new bullish wave, we can plot a Fibonacci retracement fan across a trend line that extends between the low scored on the 27^th of February ($236.68) and the high printed on the 10^th of March ($303.62).
• Since the start of the bullish wave, bitcoin price exhibited a rising support level that coincided with the 61.8% Fibonacci retracement fan level until this support level was breached on the 13^th of March.
• Right now, the price is testing the 50% Fibonacci retracement fan level and it seems that bitcoin price will bounce back off this level, so the downtrend that started on the 12^th of March will be nothing more than the market’s attempt to correct price following a 10 day bullish rally.
• The SMAs of the William’s Alligator indicator still don’t show a bullish alignment. A bullish alignment (blue downwards, red in the middle and green on top) can be used as a sign that signals start of a bullish wave.

By studying the 1 day Bitfinex (BTC/USD) charts from tradingview.com, plotting the 20, 50 and 100 period EMAs and executing the MACD and Vortex Indicators (look at the below chart), we can notice the following:

• Bitcoin price is still above the 20, 50 and 100 EMAs which reflects the current bullish trend of the market.
• The MACD indicator is in the positive territory, yet we need to see the blue MACD line cross above the red signal line to see the bulls take control again.
• The Vortex Indicator reflects the new bullish wave that has been controlling the market since the beginning of March.

Conclusion:

Bitcoin price is now moving sideways to the $285 critical support level. Our technical analysis denotes that price will bounce off this level soon and will resume rising towards $300.

Charts from Bitfinex