Bitcoin price Analysis 6 January 2016


These last 2 weeks of bitcoin have been a contracting triangle pattern – flat top with a rising bottom (an ascending triangle wave pattern). Price bounced at a support at $ 406, and it has been grinding sideways since December 27th. It is part of a larger bearish drop from $ 464. I expect sideways action to break out to the downside, and is only a consolidation after an impulsive drop from $ 455 to $ 406


On a 1 day chart, there is a range bound trend between $ 400 and $ 455. It formed around the shooting star trend reversal pattern from November. If price is to go higher, it has to break this level strongly.


On this chart, the 13, 30, and 50 day exponential moving average are contracting, a signal that almost always results in a break out. (2) is similar to (1) from November 25, a contraction that

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