Resistance

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Heres a 1 month log chart of bitcoins versus $US. The recent bullish move up has hit a strong resistance level shown in red and is now pressing that level admist what looks like quite low trading volume after the panic buying and selling has subsided.

Based on my assumption that we are now consolidating after a speculative bubble popping, I’m kind of expecting this attempt to break through may run out of steam and a long gentle price decline begin consistent with many other bull market peaks I’ve looked at.

If we break through this resistance I’d expect there will be similar resistance to overcome up at the $180 region. If the price is to keep climbing to new highs it looks to me like it might be an uphill battle all the way. Overall my outlook (in the short term) is still bearish.

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