The top?

Heres the latest 2 month chart.

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Price has dropped by a huge amount in a very short space of time. As in my bull market tops post this seems to fit the criteria of a sharp spike down rather well. Might this be a dead cat bounce in progress now? If that is the top then we can expect a long slow decline in price after the dead cat bounce has finished. I’d have a rough guess maybe bottoming somewhere about $50 quite some time from now. Don’t think we’ll see single digits again though.

Heres a view of the 2011 top for camparison purposes

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Back in 2011, the price dropped from 30 down to 10. A similar drop in magnitude to last nights drop (roughly 3 x drop).

So was that the top? Although I said no in my last post, in the heat of the moment late last night, in the cold light of day I’m thinking it might have been afterall. Just shows how sudden it comes.

My own strategy now will be to continue holding the core of my stash, which was always my long term strategy.  In the end I am aiming to accumulate bitcoins not fiat currency. Might sell some during this dead cat bounce though and a bit more to lock in some of my profits, ready to buy in again when the price gets low enough.

Just supposing that wasn’t the top, well I’ll be happy to get back on the bull run and admit I was wrong.

Edit: Yes I did just add a question mark to the title basically I can’t decide if this is the top felt quite certain earlier, not so much right now… Top or correction ? I’m stumped. Will just have to wait and see how it develops I suppose.

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3 thoughts on “The top?

  1. This is me learning to trade. I never thought I’d make a fortune in BTC, but I’m interested in the way markets work. After yesterday, I can see that it’s easy for panic to take over and stop all rational thinking. It took a while to recover rational thought and cancel the sell orders I put in (put them in around $200, but by the time they would have executed it was much lower). And it took a long time for the cancel to be acknowledged. It’s like everybody rushing for the door in a crowded theater.

    And this is just a little hobby account.

    Tyler posted a good chart of it last night, they get the most amazing charts at ZH.
    http://www.zerohedge.com/news/2013-04-10/bitcoin-drama-continues-after-hours

  2. Totally agree, I think it highlights how important it is to have a strategy beforehand, and stick to it. I’ve got some sell orders in just now but still wondering if maybe i should be buying! Lol

    On log scale the crash doesn’t look too bad really.

    Thanks for the link, its a good article

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