Flattened out

Looks like price is happy to hover around $90 just now. First we had my predicted drop to $75 then a sideways move for a few days at $90. I didn’t think 2 predictions would happen one after the other though!

Not that much to write about really but I’ve drawn up my channel on another chart, this one  is a one month log chart using Mt Gox data as usual.

Image

Looks like we’re just back to treading water, sitting happily in the middle of the upper half of the channel. With no real reason to go up or down, a bit of a stalemate between bulls and bears you could say.

You might have noticed I’ve drawn the old resistance level at $50, that was only less than 2 weeks ago, and here we are almost doubled since then! There is a reason I’ve drawn it in, which is I’m wondering if we might see something a little bit similar before breaking up through $100.

From a technical standpoint I don’t think theres much reason to have resistance at $100 like there was at $50 with the top of a long term channel, but people do like round numbers and there could be a lot of people who’ve decided to sell and lock in their profits around there.  I don’t really expect we’ll be stuck at $90 for that long this time though. Onwards and upwards soon enough.

 

 

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3 thoughts on “Flattened out

  1. i was expecting some sort of correction around $75 if you will recall… well there was a little bit of noise, and it did drop back to touch resistance at $75 ever so briefly.

    now it looks like it’s onward and upward as the mania continues. no resistance to speak of until $125 (when it takes off). of course, you always have to be cautious, as these manias can turn into corrections so much faster than in the manipulated “markets” for metals and equities.

  2. I’m thinking theres still a fair bit of upside, haven’t really tried to put a number on it yet though, $200 might be possible I think, or even $500 as i wrote in an earlier post. Very hard to say, I’m not predicting that at this stage. But yes I think its a mania, or a speculative bubble which is mainly driving this just now.

    So are you back long bitcoins again UR ?

  3. My Mtgox account, which I regard as just playing around, is about 50/50 Btc/$ right now. I didn’t benefit as much as possible, since I thought there would be corrections at 25, 50, and 75, and sold, and then bought back at a higher level. Not sure whether I will do that again at 100, or just call it a top now. My DCA is at $57/Btc now, and obviously would have been less if I had just held the ones I bought at $21 or so. Picking a top is as nerve wracking as picking a bottom.

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