Bitcoin Price Technical Analysis for 03/16/2016 – Right Shoulder Forming?

Bitcoin Price Key Highlights

  • Bitcoin price has been stuck in a tight range lately, waiting for more directional clues from this week’s catalysts.
  • Price is slowly grinding higher but is having difficulty breaking past the $415 area.
  • If resistance continues to hold, bitcoin price could complete a head and shoulders reversal pattern, indicating the start of a selloff.

Bitcoin price appears ready to complete a reversal pattern on the 1-hour time frame, signaling a possible downtrend.

Technical Indicators Signals

The 100 SMA is attempting to cross below the longer-term 200 SMA to show that a downtrend is starting. In addition, RSI is heading south so price might follow suit and drop to the swing low near $405.

The Fibonacci retracement tool applied on the latest swing high and low shows that the 61.8% level lines up with the strong resistance and area of interest at $415. A break above this area could invalidate the pattern and lead to a move up to the highs at $425. Further rallies past that point could put bitcoin price on track towards $450 then $465.

Stochastic is also on the move down, which means that sellers are on top of their game now. If this carries on, a break below the swing

Read more ... source: NewsBTC USA