Bitstamp !

Thanks to popular opinion expressed on my last up channel post. I’ve spent some time looking at Bitstamp for a change from MtGox. I really appreciate the input so thanks to all who stop by and try to keep me right.

Heres some trendlines I’ve been fiddling about with on Bitstamp USD, 4 hour candles.

Hard to find a corresponding ‘up channel’ on bitstamp. Strikes me that theres more of a wedge pattern, (which there is something similar on Gox too). Would you call that a falling wedge? If so, it could signify a break up would be expected. You could say that this is a second wedge with the red dotted line showing the first wedge which is already broken through.

The base looks horizontal and I would expect support there if the price falls, which would be about $760

Maybe bullish Gox will pull other markets with it to aid a break upwards? Or maybe I’m clutching at straws to find bullish signs because I just purchased some bitcoin?

If you missed it in comments here is a chart showing Gox, Btc-e and Bitstamp all on same price scale. Very noticable how much higher Gox is than other markets. Also noticeable how MtGox is rallying right now where other markets remain flat! Arbitrage opportunity ?

Heres a link to an old post I wrote about the higher prices on Gox which I still feel has some merit.

3 thoughts on “Bitstamp !

  1. I’ve stopped using GOX and moved over to Bitstamp, took a bit of a hit on the USD I had in GOX but BItstamp will process a transaction out to the UK within 48 hours rather than 4 – 6 weeks (this is the reason for the spread between them, it’s so hard to get fiat out of GOX).

    I looked at an arbitrage but the issues with funding/withdrawing from GOX really limit the potential here unless you have money to leave sitting on the exchanges.

    For my personal trading, I’ve been caught out a few times expecting further falls so I’ve stopped my CFD shorting for the time being and bought back in to Bitcoin about $930 on GOX as well as Peercoin at $5.5 on BTC-E.

    I might be wrong but I think we’ve tested the $780 (Bitstamp) and $880 (GOX) levels plenty of times to feel that we won’t fall below these; and the general sentiment with retailer acceptance seems to be improving. I think that the China news has been priced in and I can’t see a fall back to $450 – 650 happening again. I think that was a knee jerk reaction to the initial news from China and the relatively il-liquid markets we have; the speed which it recovered it a good indication of underlying demand beyond speculation.

  2. Maybe I’m to new for all this but….. how could be such a big difference in price between both exchanges?

    What prevents me from making a deposit, for example….of u$s 820 on bitstamp, buy 1 BTC there with those u$s, and then move that BTC to MTGox, and sell it there for u$s 955??.

    What’s the catch??

    1. The limited banking relationships mtgox
      The difficulties in getting accounts with exchanges and the time to set them up with mtgox
      The slow/nonexistent ability to withdrawal USD on mtgox

      I waited about 3 months with mtgox trying to get $500 out from them (I was testing your theory of arbitrage) then I finally decided to have my request cancelled (which surprisingly only took them a few hours) and have the funds redeposited into my account….

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