BTC Update Friday 23rd August. Market Looking a little 'Toppy' again...
Friday 23 August 2013
The market has done it's damnedest to punch through resistance at $125 this week but no joy thus far and it is looks as though we could be running out of motive power.
This is how it looks on a chart:
In technical terms, what we have witnessed over the last week is a classic, 'Spike and Channel' formation.
First we have the spike, then a retracement, which forms the basis of narrow trending channel. If this channel fails the most likely scenario is a fall back to the channel's trigger price, of around $117, in search of new buyers. There will be buy orders down here and if they are sufficient to reverse the order-flow, this could form the launch pad for another assault on the recent highs and beyond.
So, what to do...?
Well, those needing to convert back to fiat in the immediate term should think carefully about jumping off this train 'at market' as the current up-thrust looks to weakening.
Active traders can either place limit trades down at $117 support or watch price action closely for a reversal from this zone if we get there. Investors and longer term swing traders might also look to add-on in this area, safe in the knowledge that the current bullish context will not be seriously questioned until or unless we trade back through $112 on real energy.
Happy trading and have a great weekend, when it arrives for you.
Rob @ BitScan
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