Highs in the stock market are getting all the publicity, but look at bitcoins! The channel that we were following for almost 2 months has been broken out to the upside by some huge price moves, as shown clearly on this 2 month chart above.
The move which was linear now looks to be going parabolic. Looking at ‘all data’ chart shows very dramatically how the price moves in 2011 are quickly being dwarfed by this rampant bull run we are on.
After first overtaking the price of silver, then beating its own previous all time price set in 2011, bitcoins are now targeting $50 and possibly surpassing the all time high price for silver set in 1980.
Might there be resistance at $50?
As in my last post I think looking at the bigger picture on a log scale (as the third chart above) gives clues on the longer term channel we are sitting in. As you can see on this chart the top line I’ve drawn shows there might be resistance at the $50 level which ended a similar move to this one back around Jan 2012. There have not been many tests of this line yet however and unlike in Jan 2012 the bearish collapse is no longer recent, perhaps there may be enough force to push up through $50 and a good bit further yet.
Personally I’m kind of hoping it stops at $50 and then consolidates for a while perhaps dropping down to $30 or so. In which case I will be seriously considering more purchasing then.