Still trying to get to grips with WordPress, looks like my image has shrunk for some reason, which I may be able to fix later (hopefully) [Edit: Ah! They are small because they are clickable thumbnails]. The 1 month chart shows quite a clear uptrend which is the bull run of my first post. I’ve tried to mark that trend using the black line, which has held pretty well apart from the correction around the 25th January which overshot the support slightly as the price fell but then recovered. In red we can see what looks like might be a bit of resistance coming up just before the $21.5 dollar mark. In my opinion this run still looks intact and not overbought on this scale so I wouldn’t be surprised to see bitcoins push on through this resistance and keep going a bit further (mid $25 ish ? ). If they do have another correction which breaches the trendline I may evaluate if we are reaching the plateau I’m expecting eventually.
The above chart is just a close up of the last 10 days showing in a bit more detail the zone I marked as resistance in the 1 month chart.
In my first post, I mentioned how I think the reward block halfing for miners may be the main driving force behind this run. Since I wrote that I’ve done a little bit more research and starting to think the reasons may be due to the perception of the effect this will have on the bitcoin economy rather than the real impact on the economy. May write more on this in a future blog but it seems the contribution to the market from miners may already be fairly small compared to the entire market size.
Don’t really have time to elaborate more at this stage but quite keen to hit publish and get another post up. Not sure at this stage how often I’ll blog, I suppose I’ll find my groove through time.