<center>![enter image description here](https://lh3.googleusercontent.com/KBZqIvT_DlHRfq9AG0pfcRGai5mbaZOaGocg5co7spLyJ5OoSJrgJgxbNnmVFy1JZEFrjsZozvwyyA=s320 "IMG_0345.PNG")</center>


The last 48 hours Bitcoin has been a roller coaster.  Lets take a look at the chart.
In my previous [post](https://steemit.com/trading/@pairmike/bitcoin-technical-analysis-9-11-2017), I talked about the support and resistance ranges.   See the R1, S1, and S2 lines labeled on the chart, they represent support and resistance.  

<center>![Capture.PNG](https://steemitimages.com/DQmUiFr8z51qv28XYGLC4pK2kVDPSCUtsJyeGnqycMe5xD1/Capture.PNG)</center>

Specifically, R1 represents the all time high and serves as a resistance point.    S1 ($4000) represents the first support level, while S2 (2nd support) indicates yesterday's low of $2985.  These levels serve as indicators to traders and assist them in the decision making process.

Yesterday, once Bitcoin broke the S1 level on extreme volume, the next support level was $3600.  That area didn't hold and march downward continued.  However, the S2 level held and Bitcoin (note the volume) reversed very aggressively.  

I like to look at a longer time frame beyond what I'm trading.  The reason for this is it provides history to my analysis.   If you follow the S2 line to the left you'll see that level was a previous resistance point back in July 20 and 31st.   As a technical analyst, I look for prior price points in the past and determine if it can potentially serve as a reversal point.  

Could the price have gone lower?  Absolutely, but the points do serve as potential indicators.  In this case, this level 'did' served as a reversal area and traders could have started new long positions.

<center>![Capture.PNG](https://steemitimages.com/DQmUiFr8z51qv28XYGLC4pK2kVDPSCUtsJyeGnqycMe5xD1/Capture.PNG)</center>

Lastly, I added a Fibonacci study to the chart.  I wanted to see the range from the all time high to the low of yesterday.  Fibonacci proponents believe the percentage levels of 38.2, 50, and 61.8 are very important.  When an extreme move occurs in either direction, this indicator can help to find areas of interest particularly around the stated percentages.  

I'm using the Fibonacci to show the move from peak to trough (high to low).  Bitcoin has dropped $2000 dollar within a month.  Also, within the last 18 hours it has recovered almost $1000 of the previous down move.  Thus we are approaching the 50% retracement level.  As mentioned above, this is a key level.  Keep an eye on it.  It may serve as a reversal area.  

Bitcoin has proven to be resilient.  What happens next is anyone's guess.  However, read the chart and see what it is telling you.   

Do you see what I see?

Thanks,
  
[@Pairmike](https://steemit.com/@pairmike)

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