BTC Update 4-5 January
Saturday 04 January 2014
Well, our BUY advice at $750 (Gox) is starting to look really nice now as upside momentum continues to build. Here's how it looks on a chart:
As you can see, having traded through $835, the market had a brief look back at this area as Support, but this was immediately rejected as new buyers were clearly eager to get onto the move. This is a really healthy sign. We also like the fact that progress North remains relatively measured; the longer this continues the better.
For the time being you will note that progress has stalled at around $920, and this is down to the earlier inflection at this price point that we have highlighted. This may send the market into reverse for a time but so long as we don't violate rising support (thick green diagonal line) the market will still be targeting the $960 area and quite possibly higher.
So, what does this mean moving forward?
Well, the first point we would make is that opportunities to buy, (at least for active traders) are probably behind us, unless we dip back to around $835 from here. Secondly, the counter-attack that will be amassing at $960 shouldn't be underestimated. It is quite possible that the market will not make it through this resistance wall at the first pass and we are likely to see volatility increase again as the battle ensues. With this in mind, active traders or businesses looking for a sensible point in price to liquidate back to fiat should consider setting up their limit sell orders at this level or just below it.
Investors, on the other hand, can feel increasingly confident that the 'Chinese Dump' is moving into bitcoin's rear view mirror as 'the honey badger' sets itself up for another run at the highs.
In sum, the rally remains nascent, but we do sense gently gathering momentum which bodes well in the short to medium term.
And that's all we have for now, except to remind those of you who are reading this on blogger that you need to move across to our new site, http://bitscan.com as we will be shutting the blog down very shortly.
Apart from this, we wish you a very happy end to your weekends and will back online with an update if the situation changes - or in any case, early next week.
Rob @ BitScan
comments powered by Disqus