Long term trend holding

Yesterday I was watching that closing wedge on the Bitstamp log chart with a kind of bemusement as it got more and more confined by upper and lower lines of the wedge until it could barely be contained on either side. It was kind of like D-day when the two lines crossed, although at one point I wondered if it would wiggle straight through going flat instead.

Anyway today it looks like the bullish longer term trend line has won the battle with a decent move up taking price back up over $450. I think this could well be the reversal in bitcoin that many of us have been waiting for. No gaurantees of course.

Closer view of the Bitstamp chart on linear scale with 2 hour candles, shows a break up through a shallow bearish channel we were in and up through inverse head n shoulder neckline I was watching. If that pattern is going to complete might move higher yet towards $500, we’ll see.

Nice to see the long term trend finding support there, I’d be getting nervous if I was shorting bitcoin.

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7 thoughts on “Long term trend holding

      1. Interesting… Because that adds another element to the analysis (however also makes it more complicated).

      2. Thanks Artiti, I’m not going crazy then, I thought I had heard you could short bitcoin.

        I get suspicious of platforms that allow it though, after Bitcoinica. I’m already suspicious of exchanges in general, particularly after Gox. ie do they really hold all the bitcoin they say. When allowing shorting are they selling real bitcoin or is it pretend entries in their books. It works for a while until it doesn’t.

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