BTC/USD Technical Analysis – March 20, 2014 Forecast

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BTC/USD Technical Analysis – March 19, 2014 Forecast

BTC/USD Technical Analysis – March 19, 2014 Forecast

The BTCUSD has opened the day down versus the once again on Thursday, as the media holds alleged bitcoin creator Dorian Satoshi Nakamoto firmly in the spotlight.

The 30-minute chart shows the pair initially gaining strength before reversing at longer-term resistance around 612.23 as the European markets opened. The pair then held a shallow decline before dropping sharply to reach just shy of channel support around 584.31.

The question now is, “Will this channel support hold or will we see further losses in the pair as the day matures?”

Looking at the pair technically, the 200 period moving average is sloping downwards, suggesting the medium to long-term bias is still to the downside. However, last time the pair hit the channel support at which it currently resides, on March 18, we saw a considerable corrective bounce to two-day highs. If history repeats itself, which technical analysis suggests it might, today’s action could see a short-term retracement towards 597.97. A close above this level would offer up a secondary target around early-Thursday support at 607.06.**relatedarticle**

Conversely, and on a more fundamental level, Newsweek reported on Wednesday that it had located the so-called creator of bitcoin, Dorian Satoshi Nakamoto. Thursday’s media reports his reluctance to get involved, and suggests he has arranged a lawyer to help him avoid any negative repercussions related to theft, loss etc. This negative attention could serve up a risk off sentiment in the cryptocurrency space, and catalyze a break below channel support. A close below 584.31 would offer up an initial target at March 8 support around 566.47, and beyond that, look for a downside break towards 546.63.

All said, the technicals and fundamentals clash in today’s BTCUSD action. Technical support suggests a short term upside correction, which fundamental news hints at a bearish break. Keep an eye on 584.31 as a validator of these biases.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com