BTC/USD - Bottom Is In For This Corrective Wave

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
End of the month is always a tumultuous time in trending markets. Fund managers look to review their positions and take some profits off the table. BTC /USD also had to contend with some FUD this past week regarding regulation in the US.

Two successive daily closes reclaiming the 23.6% Fibonacci retracement level indicates that, for the moment, bulls very much hold sway in this corrective wave. It looked for all money we'd lose that support level yesterday. Didn't materialize. Strong surge just before close ensured another daily close above 17048.

In this 4-hour chart, we notice dwindling volume and a bullish RSI failure swing and potential bullish MACD cross. As far as strength of signals goes, bullish / bearish failure swings are as weighty as they come. Only reservation, I tend to not have high confidence in lower timeframes. If this happens on a daily chart , abandon all shorts pronto. Still, you need to be either brave or stupid to be holding a short right now.

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