The rally continues

As I am sure everyone spotted very quickly the horizontal resistance I mentioned in my last post was blown away with a fairly large pop to the upside. Exciting for bulls amongst and maybe causing a few doubts amongst the bears.

In my last chart I showed a kind of rising channel showing the trend of the rally we are in. However as a few traders on TradingView have pointed out there is a bearish rising wedge which is another way of looking at it. Here is my chart updated to show that wedge. The dotted line shows where I had the top of the channel in my last post.

I dont wish to change any bulls to bears or anything and respect the bullish viewpoint but myself I have pondered it since that pop to the upside and decided to stay on the fence. I still dont feel like going back “all in” yet and intend to leave fiat ready to buy cheaper if it does fall in price.

It seems very hard to call to be honest I could see it go either way. When it smashes through resistance like that there are doubts for sure.

Happy trading and good luck.

Advertisements

3 thoughts on “The rally continues

  1. I think the actual resistance is around $880-900 when look at the order book volumes. Could easily slip back to $800 with a relatively small dump of coins, I’m a bit more bullish than I was as I think we’ve priced in the China news and there are more hedge funds getting involved that will drive the demand into the new year.

    It will be interesting next week when the world properly wakes up in the west to see what happens. I missed a couple of good opportunities but waiting to see what happens if we get above $900 or bullish MACD divergence on daily ticks.

    1. just eyeballing the chart there is a wide area of resistance around the dead cat bounce at the level you mentioned, maybe extending up to $950ish.

      I will totally admit to being a bit out of touch of the news though, this extended vacation I’m on is keeping me away from the computer. (Maybe a good thing) I heard only a little bit about hedge funds (fortress?).

      Purely by looking at chart and how bubbles deflate there is a way to go. But if this is a new paradigm maybe I miss the boat. I sometimes think of bitcoins rampant price increases a bit like a forest fire out of control.

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s