Was intending to write an entry yesterday but the events of the precious metals markets captivated my attention. Predictably the mainstream media are crowing about how investors are flooding out of the gold market, because they can’t ‘trust’ gold! Ha, thats funny. Its nothing to do with massive selling, naked shorts by HFTs to trigger sell stops. Oh no no no.
Anyway, without further ado back to bitcoins, heres a couple of charts ..
This is the last 10 days on a log chart. From all appearances bitcoins are now in a bearish trend as if you hadn’t already guessed!
As I’ve mentioned before eg in my bull market tops post. This is just the normal next phase after a speculative bubble crashes. I believe we can now expect possibly a long consolidation period with a gradual decline. I wouldn’t write off entirely the prospect of a return to the bull run in a shorter timescale than that but I wouldn’t bet on it.
Looking at that chart I’d say the slope is pretty well defined especially the one providing resistance at the top of the channel. We’ve had a dip down to test $50 and rebounded up heading back towards the top of my channel, perhaps it will get all the way there and encounter resistance.
The lower two trendlines I’ve drawn are a bit ambiguous at this stage. I’m expecting my analysis of the channel will become more refined as it developes further.
Heres my second chart, 3 month log scale.
I mentioned in an earlier blog entry how support might be found there.. Well it didn’t. Seems like all those channels are now inactive.
If you bought late and are now sitting on a loss, don’t despair my first bitcoin purchase was similar following the 2011 crash. y advice would be to hoard your coins, it might take a few months or even longer but higher prices will most likely transpire before too long. You might be gratefull one day you had another chance to buy more at cheaper prices too.