Remember those days when bitcoin was heading up? Ah such a long time ago. Here we are still wallowing in low prices and looking to be heading lower.
Interestingly I’ve seen a few people from the precious metals sphere, once against bitcoin, now bitcoin believers who think bitcoin is being manipulated down along with gold and silver. Something I’ve hypothesised many times on here. You can’t allow competition! Imagine if say, powerful government forces took all the silk road and mt gox bitcoins, oh they already did. Some bitcoins were auctioned as we know, but the rest ? The theory goes that just like in precious metal whenever it looks like some enthusiasm may be coming into the market then quantities are drip fed and sold to suppress price rises and kill enthusisam.
If something like that is happening it has a limited shelf life, unless they find another way to sieze more bitcoin. Mind you last two bubble were fed by mtgox trading bots or something weren’t they.
Heres how the chart is looking just now as usual on Bitstamp in unbacked US paper dollars.
Note fancy new area fill! Can still see crisscrossing bullish and bearish trendlines forming wedges within wedges. Price is falling below my lowest green trendline though. Is it going to keep falling? A fall towards $400 doesn’t look too improbable really.
Heres a closer view showing price since last April low.
There is still evidence bullish forces are causing my green trendlines to provide some support however not enough to fuel a rally it seems.
To close I’ll show a quick update to my log view and ‘longish’ term channel with Bitstamp data. I can’t easily compare the full long term channel I used to look at which was using MtGox data not Bitstamp. Maybe thats a challenge for some other day to make a chart showing mtgox and bitstamp together to provide a fuller view of bitcoin history.
Base on this chart of all the Bitstamp data, maybe the current bear move will meet some strong resistance where top trendline of that channel is, which is above $400. Will be interesting to keep an eye on that.