It has been a tough week for bitcoin with the bitcoin bears in the driving seat for now. Bitcoin price tested and failed to break through the $300 Fibonacci 78.6% barrier twice so far in 2015 and has been trending lower coming close to testing $200.

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Whilst $200 is a psychologically important level to hold we think there is a significant probability bitcoin price may test and broach $200 by the end of April. The Stochastic RSI indicator is leaving overbought territory on the weekly chart while already oversold on the daily.

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Daily volume is still average implying that a long term price low is not in place yet. Be on the lookout for a flash crash with prices dipping under $200 on high volume similar to events of early January. This would set the stage for a double bottom and the beginning of a rally which we hope will finally signal the end of the bear market and enable bitcoin price to advance past $300 later in 2015. While there are no guarantees in trading buying bitcoin below $180 provides a low risk entry point.

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