Held support

In a recent post Approaching Support I showed the area I expected support as a red dashed line. Since then the price has tested that area I highlighted multiple times. Heres an updated view of the chart.

Notice the blue arrows, all of which show price touching resistance. For now at least, that support has held, although it seemed touch and go for a while.

I’ve also added in a clone of the down trendline from before this current rally began. It seems to fit quite well the fall from the top of the channel to the bottom, which we have now broken up through.

Now I’m thinking we may stay in the lower half of this channel for a while, unless some big whale purchases propel us up again. However whale purchases and sales seem conspicuously absent in the last week or so.

I wouldn’t be surprised to see the price dip back down to further test the bottom of the channel, equally I wouldn’t be surprised to see the resistance at the middle of the channel be tested in the near future. Nice to see that the uptrending channel is still intact.

5 thoughts on “Held support

    1. Personally I have purchased more bitcoins recently based on the hypothesis that the correction from that crash might be over, but I’m not a short term trader, could be quite a long time until i next contemplate selling. If I start seeing compelling evidence that prices might drop significantly eg back down to $50 or something then I might sell so to buy back later. In the end I want to be holding bitcoins rather than making fiat profit. Not sure offhand who allows short selling, I’ve heard there are places you can do that but can’t recall just now, will let you know if I find that info.

  1. @afbitcoins : i totally agree with you.
    @coinstarckr : i think campbx does. Tell me if i’m right.

    Today I notice several times spreads between asks and bids were more than 1 dollar. I don’t what does that mean but it’s rare.

  2. You wrote : “I wouldn’t be surprised to see the resistance at the middle of the channel be tested in the near future”.

    4 days later, the resistance is about to be tested !

    You rock dude !

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s