BTC Support & Resistance plus the corrective "BTC double tap"

25 בינו׳ 2014

One feature of all BTC pair charts is the phenomenon whereby price returns to the area of the previous correction of either one lesser degree (wave 4) or in wave C of the common flat correction. Examples are circled in blue. This "BTC double tap" seems to have just concluded the January correction. In the event that BTCUSD continues advance then we can expect strong resistance directly overhead at 850 (BTC-e) and 970 (MtGox) where there is an overlap of various Fib levels related to the past two months' wave formations. Further up near 1000 (BTC-e) and 1100 (MtGox) is an area that has decisively rejected price on previous attempts - possibily because it represented a targetted supply zone for "better-safe-than-sorry" profit-takers.