Heres a Bitstamp chart showing last few months of bitcoins with daily candles.
Similar to other views I’ve been looking at recently I’ve kept the fib retracement overlay on top also I’ve added MACD indicator.
Theres a noticable down trend and a spike down to nearly $400. This obviously co-incides with an awful run of blows to bitcoin which I’ve mentioned in previous posts and culminating in the demise of MtGox. My opinion is that this is likely the final washout marking point where bear trend reverses. Of course I could be wrong but I’ll be surprised to see the downtrend continuing. MACD looks like its about to cross upwards.
Many MtGox traders will be licking their wounds and chastising themselves for trusting the exchanges. I’ve often mentioned how the same happened to me when I left bitcoins in Bitcoinica. The lesson is very simple and goes like this ..
‘if you don’t hold it you don’t own it’
Meaning trust your own wallet not a website run by people on the other side of the world.
My reaction to losing bitcoins on Bitcoinica was to try and buy them back knowing I was paying a lot more for them now. If many MtGox users come to similar conclusion then a rally could ensue.
Will leave with this link speculating if the US government could be in control of MtGox’s cold wallet .