Thought I’d better write another post since I’ve been reminded its time for an update from Australia. The bear in bitcoins continues as price has fallen or you might say plummeted, below the area I expected quite strong support at about $520, support which obviously didn’t really materialise. Bitcoin dropped to about $460 or thereabouts then had a rebound but again wasn’t enough to get back through support turned into resistance.
Price as of time of writing is just under $500. Heres that familiar view of the price action on Bitstamp since the December peaks last year. Chart showing 1 day candles.
Have to say that chart looks pretty awful, hard to see much chance of further support until $400 based on how that chart looks. If it falls through there how low will it go? I still doubt it will go far below $400 myself. Which doesn’t for a moment mean it won’t. I’m not going to reprint my recent log chart here but you can find it on older posts for reasons why I think the end of the bear might be getting closer.
So what caused that steep drop through support? From what I gather it was a rumour about chinese authorities clamping down?! (Which turned out to have no substance) I thought we’d been through all that but apparently its still enough to scare bitcoin investors into panic selling.
Well I just had a look at my log chart anyway and found it interesting enough to post afterall. Intrestingly the recent price drop appears to have bounced right on the bottom trendline of my log chart. Heres a view of it showing what I mean.
Does this validate my bullish log channel hypothesis? I guess maybe. It could be co-incidence but worth paying attention to.
Before getting too excited I’ve also found this bearish fork which seems to fit the price in this bear trend quite neatly too.
For now I’ll be sitting on sidelines watching how this develops. Bullish or bearish? Its getting exciting, are doubts creeping in for those that just sold? Or are there still bears waiting to capitulate? Which way is it going to go?
Edit: Just had another observation about the recent price action. The rise in price fuelled by Ukraine crisis looks very similar to the corresponding drop on this chinese rumour.. Same big buyer now selling ? The Rothschilds starting to get in on the action !