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Bitcoin: Oversold Conditions Could Offer Buying Opportunity

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The week may not be over, but ($BTC/USD) looks to be finding support at its 20-week MA. The weekly chart is a better gauge of trend, but we need to watch for how ’sell’ triggers in the MACD and On-Balance-Volume develop on this time frame.

BTC/USD-Weekly Chart

On the daily timeframe, Bitcoin was able to make a last stand at support, although watch how it behaves when it gets to test 20-day and/or 50-day MA. Technicals are net negative and oversold, but when it climbs out and stochastics test the midline, will be a time to consider a short trade.

BTC/USD-Daily Chart

There wasn’t a whole lot going down with the indices. The () is the most bullish, but has an On-Balance-Volume ’sell’ trigger to contend with.IWM-Daily Chart

The is toying with form breakout support with weak ’sell’ triggers in the MACD, On-Balance-Volume, and ADX. I think this is consolidating for a move higher, but be prepared.SPX-Daily Chart

While the is looking more likely to undercut its 50-day MA following Wednesday’s technical distribution off a working MACD and ADX ’sell’.Nasdaq Composite-Daily Chart

For today and tomorrow, watch how Bitcoin tests overhead moving averages on the daily time frame, and if it can hold its 20-week MA by Friday’s close. Other indices hold a wait-and-see approach.





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