Bitcoin price just fell from $1240 down to $840 on MtGox which is quite a plunge! Thats the second time bitcoins price has tounched gold and then.. Wham! I wonder how many more bitcoins the FED have left now ;-)
Heres a chart with 1 hour candles.
As you can note by the small blue lines on my chart, there was further weakness in the momentum recently so another dip was not really unexpected, I didn’t think it would be so large or steep as that though. Wonder why it went like that? HFT algos or something? Big whale deciding to move the market perhaps? Attempt to suppress the unsuppressable ?
That fall was enough to shoot down through the bottom of my nice new channel too. Boo! However looks to have rebounded in an area of horizontal support I noted last time which seems to be very strong support. There has been a rebound back into the channel however the price looks like its testing the bottom again and may be about to fall below it.
Anyway despite that, I still like my channel and not ready to abandon it quite yet. If this was a manipulation attempt to suppress the price it could well backfire, just as Silk Road takedown cleared out the weak hands for the next leg up, maybe this will do the same.
Looking forward to the next battle with gold when it comes.. Round Three!