Resistance is futile

Heres an update to the channel I’ve been following lately. Two posts in one day! It’s a while since I’ve done that. Still using MtGox data 😉

As you can see the recent resistance which stopped the price rise when it bust out the channel, and the most recent price rise when it touched the middle of the channel can be traced to a line of resistance originating from the high of the first dead cat bounce after the 2013 crash. Credit to ‘Spekulatius’ in the bitcoin forums for pointing this resistance line.

Anybodies guess if we’ll fall below or bust up through. My guess is that resistance is futile and the price may pop up past $160. If we fall down through support instead, we may get another shot at breaking this resistance as shown, we could rebound off the lowest line. I prefer the first option myself.

For any chart junkies, heres a close up view of the enclosing wedge we are in.

 

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2 thoughts on “Resistance is futile

  1. My guess is that resistance is not the red line, but 146 price level. I’d say, price will bounce up and down between channel support and 146 price resistance for a week or so, and then break out upwards… time will show 🙂

    I usually expect a breakout whenever price squeezes in a wedge.

    Cheers, Chris

  2. Yes I can see where you get that level from. Could be.. Overall Bitcoins is so phenomenally bullish I mostly expect breakouts upwards too. Could be wrong but I think this channel could have a way to go yet.

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