Bitcoin Price Technical Analysis for 10/8/2015 – An Expected Decline

In the previous Bitcoin price technical analysis Go Short Now!, it was explicitly stated that the current action in Bitcoin would lead to a big decline in Bitcoin and that short positions should be created. As can be seen, Bitcoin did crash down to $260, slightly above my target of $257 over the weekend.

Bitcoin is currently trading down 4.34 percent at $265.06.

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Bitcoin price chart


But, the big question now is: What to do? Should we stay short or should we book profits?

As the technical indicators approach oversold levels, it’s best to practice a bit of caution. Read on below the latest technical indications for further clarity.

Bitcoin Chart Structure – Earlier trading in a descending triangle, Bitcoin finally breached the support and kissed $260. A closer look at the daily BTC-USD price chart above suggests that the next strong support is near $255-257.

Fibonacci Retracements – As the bearish pressure increased, Bitcoin pierced through the 50% Fibonacci retracement level of $268.50, and is sustaining below it. The 61.8% Fibonacci retracement of $256.82 is expected to be a strong

Read more ... source: TheBitcoinNews