After enjoying a volatile rally towards 268, the bitcoin market once again became the victim of its own hype. Huge selling pressure at the aforesaid peak crashed the price to around 227.
February 16th Bitcoin Trading Session
After dropping to 227, the bitcoin value attempted a reversal towards the north as traders once again began to take long positions. As a result, there was a small rally towards the near-term 50% Fib retracement mark around 239. The price managed to float above the aforesaid level, but quickly dipped a little in later hours. Though the impact of the sell-offs were not clearly visible and the price began to trend upwards due to strong buying pressure.
At press time, the BTC/USD is valued around 236 and has dropped nearly 2% in the last 24 hours.
What to Expect Today?
It seems that the price is recovering from the previous p-n-d effect. The last three green candles in the 4H Bitfinex chart indicate a near-term bull flag, which may extend up to the 61.8% mark around 242. Coincidentally, this point is also the daily moving average, above which lies a slightly powerful bullish area.
As per the technical indicators, the overall dynamic of the 4H BTC/USD market is bullish. The RSI is clearly heading towards north, hopeful to enter the buying area upon jumping over the 55 mark. The bull-run meanwhile will only be extended if the RSI crosses above the 60 mark. But price is likely to lose fuel before attempting to touch this level.
We encourage you to focus on 242 before playing your short or long calls. You could take a long position towards the 248-255 area once this level has been crossed. However, if the price breaks near 226, it would be a good time to short your holdings and buy back near the 210-support.
Conclusion (On Daily Charts)
Current Mood: Bullish
Moving Averages: Buy (11 Buy 1 Sell)
Technical Indicators: Buy (5 Buy 0 Sell)
Read further analysis here
https://www.coinarch.com/Info/Blog?Page=2015/02/daily-bitcoin-price-analysis-16th-february/
