I’m a bit overdue another post so without further ado heres a look at a few charts. Starting with bitcoin, heres an update to my chart showing Bitstamp data with 1 day candles, as usual price in US dollars.
With bitcoin falling back down below $500 the inverse chart pattern mentioned in my last post hasn’t played out, instead price is looking to retest a trend line at around $450. If that line fails to hold I think further support will be found under there possibly where I’ve marked another parallel trend line. As I’ve mentioned a few times lately I’ve been predicting a bit of a long grind downwards in bitcoin, the way its playing out still seems to fit the idea I had in mind.
As many of you might know well, I often like to look at log scale for bigger perspective, so heres a look at Bitstamp on log price scale.
This chart stretches way back to end of 2012 which is a long time in bitcoin world. From look of channel I’ve drawn in, might expect price to start a rally from the area around the top of that channel as has happened a couple of times before, noteably at the start of the Dec 2013 ‘bubble’ which followed the Silk Road crash. A sudden dip down towards $400 with a sharp rebound might be the kind of event to fit that picture if a similar thing were to occur. Its not inconceivable that price could fall down into that channel however I don’t think that is particularly likely I couldn’t rule it out completely.
To finish up I’ll also have a quick look at Cloak which is one of the alt-coins most interesting me at the moment, data here taken from Mintpal, showing 12 hour candles on log price scale.
Note with most alt-coin charts I post the price scale is in bitcoins not US dollars. So falling in price means falling compared to bitcoins and vice versa with rising price.
Not wanting to tempt fate too much as the altcoin markets are so volatile, not to mention wide open to unscrupulous pump n dumps and other cons. However to me it looks like Cloak has completed its crash, perhaps you could call that a double bottom. At the moment price is continuing a bit of a recovery, noticable on log price scale much more than linear scale, it appears to have broken through a minor line of resistance. I’m hoping to see support along that rising trendline if or when price falls again.