Bull channel

I mentioned the channel I’m now looking at in the comments of my last post. Since then the bottom of the channel has been heavily tested and withstood the recent fall in price. Therefore, with my new bull tinted glasses on I say the rally is still intact. Heres how the chart looks on MtGox data from TradingView, with 4 hour candles.

You might recognise the bottom trendline as the same one which I plotted on the supposedly bearish rising wedge recently. This trend looks very well established with many touch points along it. The top line was placed when the price recently broke up through the bearish wedge leaving many of the remaining bears including me defeated along the way.

Although the recent fall in price did overshoot the bottom of the channel slightly I will allow that as a normal exuberant correction.

Thats my thoughts for now. Cheers

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11 thoughts on “Bull channel

  1. That’s a good channel, I’m running a similar one, but I still think we’re in bear mode right now and will drop through the bottom of it. I don’t think the volume is there to support a large surge and the negative news coming out of China is going to put concern in the market unless there is a major rollout of Bitcoin payment acceptance in the next couple of months I think prices will still continue to drive downwards.

    The 200 MA is providing good support so I see the three major support levels short term as:

    $910
    $890
    $850

    After that there isn’t much around until about $750 then onto $500.

    We’re also about to cross MA’s on 6 hour ticks and the 50 MA is moving down to the 200 MA.

    Annoyingly we’re choppy at the moment and I hit a few stop losses 😀

  2. I hit a few stop losses too two days ago.
    I’m still bit perplex. I’m in fiat and i’ll see what’s the situation after my working time if there’s no big moov.
    The channel you mentionned is quite steep. That’s nice, I like hiking !
    I set up price alerts in my phone, have to get very focused on when price will touch it back !

    1. $866! Wish I hadn’t stopped out my leveraged short positions, got back into them at $940 though so quite happy so far.

      If we fall below $850 – 860 which is my next resistance we might be below $800 before day end.

      1. I’m using Plus500 (http://www.plus500.co.uk) for short trading, it’s a CFD so leveraged and tax liable although you can offset your losses against any CGT liability from selling Bitcoins so actually not too bad as a hedge (need a spreadbetting company to take on BTC though for tax free trading). Spread isn’t too bad, initially the contracts expire daily but once you’ve put some trades through you can ask for a monthly contract which carries a finance charge overnight.

        I was a bit worried that the sudden Overstock announcement on Bitcoin acceptance would move the market up quickly, but seems to have had almost no effect prices went to $945 for a while but the depth of the sell book there stopped it going further.

        You can also trade Litecoin, from BTC-E, on there although the spread is pretty big on that.

  3. A quick analysis showed me that Mtgox has moved down in first with 935 BTC volume (about $800 000) during 2 minutes.


  4. https://www.tradingview.com/x/AQlnWcmj/

    See on that graph orange line which it has been several times a resistance. Then it became 3 times a support ; latest : 4 hours ago. Grey line is the bottom of the channel you mentioned.

    When I woke up, I hoped to see a nice MACD crossover during the day wich it could promise a interesting ride. But it never happened.
    Tomorrow perhaps !

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