Bitcoin Technical Analysis for 03/10/2016 – Price Trapped Between Two Support & Resistance Levels

The $417 level has become a prominent pivot area on the Bitcoin charts this month. This area acted as support four times between March 2nd & 4th – just prior to the big sell-off that took place on March 4. When price finally bumped against $417 on the 7th, this level started acting as resistance. If price makes its way above this level and trades there for a few hours, I would not be surprised to see a rally towards the pivot zone at $422, or even a push higher towards the big pivot at $432.50!

The market is now trapped between $417 and $410. The $410 area has been used quite extensively since the 4th of March; three times as resistance; four times as support. A break of either of these levels will signal which way the market will trend. If price trades underneath $410, a sell-off down to $403 will be very likely.

The $403 area is nowhere near as important as $417 and $410, but the market did used this level as support/resistance briefly, so it should be noted and market on your charts.

Disclaimer:  This is not trading/investment advice!

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

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