Support held, for now

In the wake of more negative news bitcoin has dropped back down to the bottom of the same log channel which marked the lows back in April. Today the same trendline lies at $555 which is being tested now.

Its nice to see support on that line but I have a feeling price may well end up below there before this move is finished. It will be interesting watching that line of support anyway.

Bitcoin will continue to have uncertainty in its valuation due to the FED auction, which is still a couple of weeks away. Additionally coindesk has stories that ‘Eavesdropping attacks’ can unmask a high percentage of IP addresses on computers running bitcoin wallets. And the chinese are cheesed off with bitcoin.. again.

Heres a closer look at that bounce on support

4 thoughts on “Support held, for now

  1. You wrote : “I have a feeling price may well end up below there before this move is finished”.

    I hope you’re totally wrong.
    if it happens, it would be kind of glitch in the matrix. I really don’t want this.
    This uptrend line has a very nice positive slope.
    All bulls have to defend this support.

    1. Its looking less likely at the moment with price rebounding quite nicely. I like that slope too, wouldn’t enjoy it being broken if it does.

      However even it it does manage to spike below that line I don’t think it would be enough to change the overall bull market much though. Bitcoin is on a phenomanal big adoption curve and in some ways just getting going.

      In a way I think this correction was needed anyway, if we hadn’t had the steep drop we’d probably have had the long grind sideways instead.

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