Bear breakout and up

MtGox action has been a bit flat today little ups and downs but nothing too dramatic, an earlier attempt to break through the midline of my fork failed. Was going to post an updated chart in the comments of the last post but thought this might merit a post of its own as theres been quite a nice break up into the top half of my bearish fork. Here it is with 1hour candles

Even though I am now quite short bitcoins, (disclosure have sold part of my stack which I was supposed to leave as buy and hold), I still get a warm fuzzy feeling seeing bitcoins rising in price. To me it symbolises freedom from debt based serfdom when I see bitcoins going up. Wether or not bitcoins ever fullfills the dream of overthrowing the central banking cartel who monolpolise money creation for their own gain remains to be seen, but if nothing else it is shining light on new possibilities for mankind.

Wow, in the time it took me to write that bitcoins has shot up a fair bit more, like this

Anyway, its nice to see this run but personally I’m still feeling like the bearish trend is in control until i see good evidence its not. If we can break out the top of this fork I’ll start rethinking but until then I’m still expecting lower prices may occur.

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8 thoughts on “Bear breakout and up

  1. With a daily graph, indicators such as momentum or MACD are still very bad. It might be a dead cat bounce.
    Maybe I’ll take this opportunity to sell few more bitcoins.

  2. Maybe the answer is: “Long Term Channel” ??

    It’s not the price that should be at this moment in bitcoin’s history. Sooner or later the price has to return to the long term channel.

    I love that channel. It’s the only thing that keeps me, that avoids me from become insane myself :D

    • I love that long term channel too. That was one of the reasons I was so confidently bullish when I first got into bitcoins. We’re quite far above that just now though, will be a lot of pain for many people if we return to it.

  3. Just as an observation. Looking at bitcoinwisdom.com any timescale for all of today comparing Mtgox volume with btcchina volume, what gives? It’s been rallying all day and the volume from mtgox is SO much less that it’s scary. Looks out of line… almost suspicious…of what I can’t say… any thoughts? perhaps mtgox has cautious bears?

  4. Heres another update again compared to my fork. Price keeps rallying and breaking higher but the trend is still definately down in my view. I’ve added red dashed lines to show the trend we are up against. This rally is like trying to swim against a strong current, how long can that rally last? I could be wrong but I still think lower prices will come in due course.

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