Bitcoin Chart Update - March 6, 2018

For those keeping tabs on Bitcoin prices, here's an interesting daily technical chart currently at play on BTCUSD:

Chart courtesy of TradingView

1. I've drawn Fibonacci levels from the BTC peak of around $20K all the way down to the trough at around $6K. This was a massive 70% drop on BTC within just a span of 3 months.
2. Price has since recovered and went up to $11.5K, touching right at the 38.2% Fibonacci retracement level before turning back.
3. A short move down and a subsequent recovery puts the price right at eh 38.2% level once again. Furthermore, price is also right at the downtrend line, which may provide additional resistance.

So we are now currently at this stage. A convincing breakout from here will be significant for a few reasons:

1. It will form the next leg of a higher-high/lower-low pattern.
2. It will break a downtrend line that could prove pivotal on its next move.
3. A successful breakout will also target the 50% level at $13K and the 61.8% level at $14.7K.

On the flip side, an unsuccessful breakout will justify the resistance at $11.5k and may indicate BTC is trading in a range and is not primed for a bullish move yet.

Good luck trading everyone! As always, trade with caution.

Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.