BitShares Technical Analysis for 03/10/2016 – Price Breaks Above Important Pivot Zone

Yesterday’s announcement concerning the addition of Bitshares to Microsoft’s Azure Blockchain-as-a-Service platform, propelled the BitShares exchange rate to a high of 0.00001747. Over the past two days, the market has broken above a very important pivot zone. The 0.000013 area goes all the way back to October of last year, when 0.000013 was first used as support. Price was unable to break and stay above 0.000013 since November of 2015, when the exchange rate plunged under 0.000013 for the first time. Since then, the 0.000013 level acted as resistance three times. Today, price finally managed to break above this massive pivot zone! The 0.000013 area in all likelihood will now act as support, assuming there is a retracement down to 0.000013 at some point in the future.

Bitshares-technical-analysis-Mar10

The 0.0000135 price level has become an important technical level in the past several days; once as resistance on March 6; twice as support today.

Bitshares-technical-analysis-Mar10-2

 

The big question now is: will the market continue to rally from here?

There are some signs that the bull market may be getting overextended. The MACD indicator is showing divergence, which is indicative of waning bullish momentum. Divergence doesn’t always signal a market top, but it does show potential weakness in the market.

Bitshares-technical-analysis-Mar10-3

 

Disclaimer:  This is not trading/investment advice!

Chart source: https://poloniex.com/exchange#btc_bts

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