Bitcoin Technical Analysis for 03/04/2016 – Is the Market in Oversold Territory?

In my previous Bitcoin analysis, I speculated that if the exchange rate slipped underneath the pivot zone at $432.50, a sell-off would take place down to the $420 area, and that is what transpired this week. The pivot zone at $432.50 has become even more important now from a technical viewpoint, as this price level has acted as support about four times, and three times as resistance. Mark this one on your charts!

Although the market sold-off hard this week, there is some evidence that the bear market may be overextended. Just like in my last article, the RSI oscillator is showing that divergence has been building up since the 2nd of March. Price has made several attempts to break lower, but without much success. Remember, divergence showed up just before the market reversed on the 29th of February.

The 30-minute chart shows that the $422 area has become a pivot zone now. Price has not been able to break above this price level in the past two days. If price makes it above $422, I would expect a really back to the big pivot zone at $432.50.

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Disclaimer:  This is not trading/investment advice!

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Chart source: https://www.okcoin.com

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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