BTC Update Saturday 23rd November
Saturday 23 November 2013
Well, in our last post we identified $675 as a key price point...
...and as you can see from this chart the market first breaches it, then tests it as support. When this is rejected a new wave of buying propels the market back to the North to have another look at the highs - as we suggested it might.
As we write, the market is again flirting with the inflection point at $820 and if that goes on momentum, the all time high at $900 will hove quickly into view.
Having given back a full 50% of its most recent surge, it is remarkable that we back up at these levels within a few trading days and this goes to show just how powerful the latent buying power is in this young market.
Based on what we see right now it is difficult not to conclude that the top looks vulnerable and if momentum continues to build $1000 a bitcoin seems well within reach.
Having said this, it doesn't all have to happen at once. While we have seen a meaningful transfer of bitcoin from weak to strong hands over the last week, a stall at $820 will inevitably point us back down at $675.
And in many ways a period of consolidation at these highs in price would be no bad thing. But in the final analysis, markets will do what they want. All we can do is watch and trade against the levels as they present themselves to us...
Have a great weekend.
Rob @ BitScan
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