All the interesting news is coming from China, many thanks for all comments in last thread. It seems the chinese authorities are deciding to declare war on bitcoins. Chinese exchanges will not be allowed to accept deposits anymore however bitcoin investors will be allowed to sell bitcoins and retrieve fiat funds. In other words, if you are chinese you are being told, sell now. I’m not 100% sure if this is all confirmed. But even so a big sell off seems to be in progress.
Based on technicals I was already bearish based on the way the charts have been looking. The strong horizontal resistance has been breached and price fallen around 20% on Mtgox in US$. In China the bear is raging even more, and price down about 28% at time of writing. These prices will seek to balance out, I’m guessing China will pull US$ down further along with it.
Heres an update to the China bear fork I posted a little while ago.
And for good measure heres the updated MtGox bear fork I have also recently posted.
Based on these charts I’m guessing China may not fall much further but further falls in US$ might be a bit more likely. My analysis may well be revised a fair bit as things continue to develop.
I’ll be away from home over the festive period but will try and post as normal, particularly if anything exciting happens.