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March 04, 2015, 03:48:52 AM |
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Coindesk recently published an article explaining that the average bitcoin enthusiast thinks the current bitcoin price is undervalued. ALFAcoins recently launched their Fair Bitcoin Price indicator which values the bitcoin price at $518.59. “The price aims to illuminate what it considers the true value of bitcoin by factoring for the cost of bitcoin mining, or production of the commodity itself”.
We don’t know how such a prediction would inspire traders to hold on to their investments, but it surely paints a picture to where this digital currency is headed long term. Read on for our daily bitcoin price analysis.
March 3rd Bitcoin Trading Session In our previous analysis, we predicted the market to test the 280-mark and explained how this position would be a profitable exit point. As it turns out, we were nearly correct, as the bitcoin price clearly attempted a bearish correction near 281, and later dropped to 267. However, good buying pressure near yet another new support inspired the market to continue its prevailing bullish trend.
Amidst all such corrections, the BTC/USD opened near 273 while adjusting to the market’s volatility. At the same time the pair tested 267 as its new and temporary support point. Somewhere in the 12th hour, the market once again skyrocketed in hopes to break more resistance levels, the next near 295. The trading volume meanwhile also saw a huge surge, adding further to the prevailing bullish momentum.
At press time, the BTC/USD is being valued around 284, right above its 61.8 retracement level at 283.
What to Expect Today? The price is now targeting older resistance levels. We have zoomed out the chart so you can see the red dotted horizontal line of 297. You will notice how this particular point is almost symmetrical with the 76.4 retracement level, while at the same time has influenced a sharp pull back towards the dangerous bottom near 165 (between January 9th and 14th this year). We are not saying this point could repeat itself, however it still holds as an important upside risk that could slow down the prevailing bullish momentum.
Meanwhile, there seems to be a lack of resistance between the current price and 297, so if the price manages to stay above 283, we might see a smoother rally in the next few hours/days.
On the downside, the 267-support will continue to hold the price barring the case of manipulative sell-offs.
Conclusion (On Daily Charts)
Current Mood: Strong Bullish Moving Averages: Strong Buy (12 Buy 0 Sell) Technical Indicators: Strong Buy (7 Buy 0 Sell 4 Neutral)
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