Been a little while since my last entry so thought I’d take another look at the bitcoin charts. Heres a 2 month log chart showing the familiar picture with the all time high and the action since the fall in price ..
The trend line I was looking for support at held for a couple of days but then without any fuss gave way, which I have shown as a dashed line. This is reminiscent of the way the previous down trend I looked at also gave way in similar fashion.
Where does that leave us now? It’s looking like the wild swings in price and between bullish and bearish sentiment are fading and the price is settling at about $120. Its hard to know what might cause the next big move up or down. I’m not going to try and predict it. Maybe the market has found a fair price for a bitcoin for todays economy, at least until the next Cyprus style black swan event or until the American government decides to take down Mt Gox or whatever.
If you are already sitting on a bunch of bitcoins perhaps its time to start using some as money to buy things. Bitcoins long term success will depend on how well its economy grows and matures.