Humaniq

Bitcoin Technical Analysis for 02/12/2016 – Many Patterns

While the month of January proved to be quite a volatile month for Bitcoin, February has been much more muted. However, there are some indications that the market is gearing up for action.

For instance, the 4-hour chart is showing a nice Head & Shoulders formation. The right shoulder is a little higher than the left one, but the basic pattern is still there.

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The 4-hour chart is also showing that the trading channel – which the market has been bouncing around in since the middle of January – is gradually curving upwards. Unless price plunges all the way down to $373, the curvature of this trading channel seem to be suggesting that market bias is shifting to the bullish side.

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There is also one important pivot zone that has to be broken before the market can rally. Of course I am talking about the pivot at $385.50, which is clearly visible on the 30-minute chart. This price level has acted as resistance on three occasions since the 4th of February, and also three times as support. This is a pivot level that the market needs to break before any serious rally can take place.

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If you are an active trader, you may want to mark $376.50 on your charts too. This area has been respected by the market a few times in the past couple of days.

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Disclaimer:  This is not trading/investment advice!

Image Source: 1

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

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