BTC Update Tuesday 27th August - BIG Move.
Tuesday 27 August 2013
So, as it turned out our buy recommendation over the weekend never got re-tested. Instead, following a minor correction, the market picked up its skirt and bolted North on serious volume, breaching resistance at $125 and surging as far up as $133 so far.
Here's how it looks on the Chart:
Now clearly, this is great news for all Bitcoin bulls, particularly those who followed our most recent recommendation and bought at $118. As I write they are sitting on a profit of 10% after just 3 days exposure; nice work if you can get it!
Having said this you will have noticed that the market is now leaning back against it's trend channel line - and this presents us with a conundrum, because breaking out of an established channel to the upside is hard for any market to sustain and if the attempt fails all markets are prone to look back in the other direction. This in mind price action over the next 12 hours will be critical...
...If the market finds a renewed wave of buying pressure it is possible that we will break away from the trend channel line, power through resistance at $133 and target higher resistance still.
However, if the buying has exhausted itself here - or maybe against a further failed attempt to break through $133 - you can anticipate the bears to launch a meaningful counter-attack which has the potential to push the market all the way back down to the other side of the channel.
What we are trying to say is that notwithstanding the power of this latest advance there would be no shame in lightening up your position or even closing the active trades anywhere between here and $133. While investors will be happy to sit tight, those needing to convert back to fiat in the immediate future should consider booking profits right here and no-one should be considering either adding to or establishing new buy trades 'at market'.
While seasoned traders will be well aware how rapidly bitcoin can move when the moons align, we are in rarefied oxygen up here with plenty of resistance above the market against which the wise will be preparing to book profits...
...so be careful!
By Rob @ BitScan