BTC Update Monday 9th September
Monday 09 September 2013
Okay, so our last buy recommendation at $135 is 10 bucks underwater. Does this mean that the good times are over for bitcoin? Not necessarily - in our view. Here's the chart:
On the one hand, bitcoin has taken something of a hammering since failing at $150 resistance but as we have noted in the past, it is very difficult for any market to escape out of a rising channel to the upside and when such an attempt fails, the short term reversal in sentiment often sends price back to the other side of the channel.
Now look closely at where bitcoin is trading right now.... that's right, having failed to break out to the upside, we are knocking up against support at the other, which is congruent with horizontal support at $125.
The bottom line is that while the price action looks ugly, this still looks like a sensible place to buy bitcoin, at a bargain price, within the context of the prevailing uptrend.
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