Bitcoin Price Technical Analysis for 03/02/2016 – Complex Head and Shoulders?

Bitcoin Price Key Highlights

  • Bitcoin price has been unable to gain much traction on its previous long-term climb, forming one consolidation pattern after another on its short-term time frames.
  • Zooming out to the daily chart reveals that bitcoin price might be contemplating a possible long-term reversal.
  • A complex head and shoulders pattern has been completed, with a diagonal neckline right around the current price.

A downside break below the neckline of the head and shoulders pattern could confirm a prolonged selloff for bitcoin price.

Technical Indicators Signals

The 100 SMA is still above the 200 SMA, which suggests that a bounce off the neckline might be possible. Aside from that, the short-term SMA is moving farther away from the longer-term moving average, showing that buying pressure is strengthening.

Also, stochastic is moving out of the oversold area, which means that buyers might be able to take bitcoin price higher from here. RSI is on middle ground but appears to be on the way up as well.

Depending on market catalysts, however, a downside break might be possible. A long red candle closing below the $350 area could be enough to confirm a long-term drop, which might take bitcoin price to the 200 SMA at $320 or

Read more ... source: TheBitcoinNews