The blue line has finally fallen (top one on my chart) with prices down over 10% at time of writing, which is a pretty massive drop after the recent ‘stability’. I’ve always thought the blue line was pretty significant level but even so, steepness of the drop has surprised me on this fall.
Heres how that break below looks on bitstamp with 4 hour candles.
The warning was there beforehand where I’ve marked ‘oops’ on my chart with a little arrow, apologies for not posting at the time last night, as I was too tired. But thats when I started to take notice and expect a drop, to me that signified a change in behaviour with chart becoming bearish even though at the time it had rebounded back above the blue line.
I’ve put a new blue line in the sand down at about $611 which I expect will provide strong support and a dotted line at about $675 which may provide support at a higher level if price can get above it.
Hard not to kick myself for lack of patience to be honest, I could have drawn a chart that looks a lot like this back in December, its playing out very similar to the April bubble collapse and other bull market tops which I’ve posted in the past and this drop provides no real surprise. Having bought back in at higher levels than this I could instead have waited for cheaper prices to come to me…
On the other hand I’m not going to beat myself up too much though. Leaving fiat money in a bank in this economy is a risk. ‘Bail-in’ has been legislated almost everywhere. Meaning when the next economic collapse shit hits the fan, it won’t be taxpayers bailing out failing banks it’ll be your deposits just like in Cyprus, which was the blueprint. So based on that thought I am happy to hold bitcoins in a falling market. I bought my very first bitcoins during the first bubble collapse and had to wait quite a long time before it turned out to look like a good idea. If that happens again, well, c’est la vie. Personally I see another run happening sooner than that though once this correction has ran its course.