As I write this bitcoin is up over 1% and close to that resistance level I was looking at in my last post. This is a similar move to yesterday which then faded. Perhaps the same will happen today?
Heres a view of the chart with 1 day candles, on Bitstamp as usual.
As I’ve previously mentioned I think there are a few zones of horizontal support we’ll have to pass through if the bearish trend is to remain intact and we fail to pass through that red line. I’ve shown what I think are the main ones with blue dotted lines. If the down trend manages to continue until the bottom one when price reaches $400 that would mean about a month and half yet of further price fall and further consolidation until the bottom blue line and the red down trend lines cross at the start of May.
Heres a look at Bitstamp on a log chart. I don’t know why I don’t look at log charts more, some of you may remember the earlier days of my blog when I exclusively looked at log charts. I think log chart give the best picture of longer term and big picture views. Anyway here it is with 1 day candles, showing April and December 2013 bubbles.
I’ve marked what looks like a bit of a channel. The top of those blue lines I particularly like, it seems to bisect very neatly the bubbles which have appeared along the way. From this view it looks like Silk Road was the only event which managed to pierce the bottom of the trend, MtGox not really coming close. For a bit of fun and because its a while since I made any predictions I’m going to suggest that we will see a new all time high in bitcoins by the start of July this year. Some time after that it could get crazy. What will it feel like when bitcoins are rising and crashing by thousands in a day ?