Critical test

Things are moving so fast just now, and with bitcoin charts site down so often it can be difficult following the market as it unfolds. However I’ve managed to grab a couple of  screen shots of some charts just now, which I’ll share here.

As you will see looks like we’re at some very critical levels.

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Heres the 3 month chart, similar to the one I posted recently with all 3 channels on it. This time theres only the bottom of the very first channel left. The last trend line left standing. I was hoping for support from the second channel which never materialised. Even this last support level has been breached to the downside. However it looks like there is an attempt to break back above. And given the height we plummented from a little overshoot might still be permissable.

There is also this long term channel which provided stiff resistance when we broke up through $50, will it provide some support this time?

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If you can make it out, the vertical red bar has just reached where that level is.

Theres been a lot of critisism of MtGox during this crash, the fact that they closed, ‘to allow the market to cool off’ looks like its possibly had the opposite effect and caused people to build up a hysteria of having to dump their bitcoins but being unable to. I hope one outcome is that people diversify into more exchanges, its not particularly healthy for one to dominate so much.

If this was a deliberately created fake top then it looks like it might have worked a treat. All the weak handed people are spewing up their bitcoins way too easily and in doing so playing right into the hands of the big guys. Makes me feel sad but I suppose thats the way of things.

 

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