Bottom has fallen out of the bull channel I posted about so one may think the bear is in the ascendency again.. Likely there are still concerns about China and further waves of selling expected until the end of the month as chinese speculators exit their long positions. There are also popular charts on TradingView using Elliot Wave theory on the log chart to show return to much lower levels, eg around $200.. I don’t discount that possibility, although I do not use EW analysis myself I have often pointed out how far above the long term channel we still sit.
However there have been too many failed bear moves for my liking, bulls seem to appear as if by magic just when you think the market is poised to move down. Bitcoins is still getting plenty of mainstream attention, market cap is still relatively small, new investors may take bitcoins much higher.
Heres my latest chart which expands the bull channel with new cloned trendlines and now shows red bear trendlines which we appear to be following at the moment. I still show the horizontal support around $830. This is MtGox US with 4 hour candles.
Although I’ve titled this post as bulls fading, I’m thinking bull trend will probably continue to rear up and spoil the bear scenario resulting in a kind of sideways churn. If the price manages to get below the bottom trendline or that horizontal resistance there may be a chance to get cheap bitcoins yet though. For me best thing to do is wait and see how it all develops.