Key Points
Bitcoin price may be forming a bearish structure against the US dollar in the near term.
March outlook looks negative for the BTCUSD pair, as there is a contracting triangle pattern forming on the daily chart (data feed from Bitstamp) calling for a major break.
The price is currently in the 5 th wave and may complete near the triangle resistance area.
Bitcoin price is eyeing for a break in March 2016. Let us see how it may trade during the remaining part of the week. Bitcoin Price – Break Down?
Bitcoin price is trading in a range for the past couple of weeks, but if we look at the weekly chart, then we will know that BTCUSD is actually forming a breakout structure. There is a contracting triangle pattern forming on the daily chart (data feed from Bitstamp), which can be seen as a major pattern for the next move in Bitcoin price against the US dollar.
If we look at the wave count, then the price is in the 5 th wave at the moment, which can very well complete near the triangle resistance area. A break below the triangle support area could easily push the price towards the 61.8% Fib retracement level of the last leg from the $300 low to $460 high. The price is currently flirting near the 100-day simple moving average, and a successfully close below it may increase the bearish pressure on BTC/USD. Let us wait for a break during the coming days and then figure out which way to enter a trade. The chances of it breaking down is more compared with a break higher.
Looking at the technical indicators: Daily MACD – The daily MACD is almost flat, calling for a break moving ahead. RSI (Relative Strength Index) […]
