Retesting the trendline

As described in my last post bitcoin broke finally broke through a long standing resistance line, which is the big solid red line on my chart. Shown here on my updated bitstamp chart as usual with 1 day candles.

It looked like it might continue to push up through the horizontal resistance too, upper dotted line just above $500, however instead has fallen again. This looks like a classic retest of the trendline which was resistance should now provide strong support. I believe this is normal occurance where bears try and fail to regain control and price may ride down that trendline for a while. I doubt price will get below that red line again though, absent any dramatic market moving news. Instead the ever bullish bit of me wouldn’t be suprised to see another rebound push through that upper horizontal resistance, or failing that there may be a period of *gasp* stable bitcoin prices, with price roughly contained in the area between those two horizontal trendlines.

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