Currently, Bitcoin is trading at $381 on Bitstamp after hitting a low of $376 and a high of $395. In our last technical analysis, we discussed that Bitcoin’s price is facing a potential breakout because of the inverse head and shoulders formation. However, the actions in the past hour have discredited that assumption as the price dropped sharply by $15 in a matter of minutes.
Looking at the 30 minute chart on Bitcoinwisdom we can see a triple bottom formation.
A triple bottom pattern is usually used to predict the reversal of a prolonged bearish trend. After the drop from $465 to $355 earlier this month Bitcoin has been facing a great deal of downward pressure, this latest round of dumping may be the weak hands getting out and the strong hands entering a long position. Remember, it is never a good idea to make trades on emotion so if you were holding bitcoin and missed your chance to sell before the slide selling now to cut your losses may be too late. Unless the price tanks further to test the $356 support, which is highly unlikely given that the market bounced off three times from the $371 support line, it is a good idea to wait and see how much the price will recover before cutting your losses and getting out.
Read More:
http://themerkle.com/coins/bitcoin-technical-analysis-12816/
