Time for another look at bitcoin. Remember that positive news about Paypal? Well not quite bullish in the end really, the way the initial bullish spike up was engulfed in selling was totally a natural response to that kind of news.
It was natural market forces and animal spirits, definately not manipulation by powerful entities who are able to seize bitcoins in large numbers.
Anyway that positive news ended up as prelude to a bit of a crash for whatever reasons. Heres a chart showing bitcoin versus US$ with weekly candles for a kind of big picture view.
Price dropped through most of my support lines but its quite nice to note the price didn’t drop below the previous all time high from the April 2013 bubble peak. Apparently huge numbers of bitcoin were sold on bitstamp during that fall in price (captitulation?) but were gobbled up voraciously by the market. Note I’ve included momentum indicator which looks like is showing a bullish divergance marked with some pretty pink lines. If you want another positive indicator usually when my blog posts are spaced weeks apart that is when my sentiment is at its lowest. Anyway price is rebounding very nicely at the moment and looks to be climbing back over lowest of my red trendlines.
Moving out to log price scale heres another view of the chart which I have posted previously.
Will it still come to pass that the price will hit the bottom of that channel? Well who knows, looking into tea leaves doesn’t seem to help. I haven’t ruled it out yet.
To finish up with heres another log chart a bit closer in with 1 day candles.
Bitcoin almost bounced in right area for trendline in green but what I’m interested in at the moment is resistance up above $450. I’m thinking a rally up to that level is quite possible, time will tell.
By the way thanks for great comments on my last post, all were much appeciated.