My last bitcoin post showed support after the silk road auction panic. That support was found just about precisely on the bottom trendline of the bullish longer term log channel I’ve often referred to on this blog.
My fears that log trendline might might be broken seem increasingly unfounded, theres been no retest of that line with price happy to consolidate up near $600. With the silk road coins auction still about a week away it now looks to be priced in.
Moving back to shorter timescales, heres an updated chart showing how the recent price action looks with bitstamp data and 1 day candles. This time back on linear price scale.
At the moment there looks to be support from the lowest of my green trendlines. For me this is a bullish sign that the uptrend is still intact. Purple lines show what looks like a larger channel encompassing the upwards trend. Purple dashed line is approximation of where that log trendline lies.
Before the silk road panic I was expecting a period of sideways consolidation and a kind of correction towards the bottom of the pink channel shown on above chart. In a way I think this drop can be viewed as a correction that was likely to happen anyway, after the large recent price rises in short space of time its healthy for the market to consolidate.
In summary bull mode still on, after the auction is out the way and if price pushes on above $600 we could easily see further large up moves.
edit – updates in comments