Theres been a bit of time elaspsed since my last ‘nice bull moves’ post so maybe time for another look at bitcoin. To start with heres a chart showing linear price scale, and 4hour candles, bitstamp data.
You can see that spike which occurred after my last post. However we didn’t get a move up through the next trendline, which didn’t really surprise me to be honest. This long grind down has to shake out more weak hands yet.
Instead we found quite strong resistance roughly were I expected and now trying to hold support on the original trendline which was broken up from.
So now onto the main thing I wanted to have a look at, which is my updated log chart. Here it is, as usual showing bitstamp data but with log price scale this time, and one day candles.
I’ve mentioned several times by now how I expect to eventually reach the bottom trendline, so far it looks like we are still on course. In fact its quite uncanny how accurate those arrows I sketched in are proving to be, particularly that red one! Judging by the eerie accuracy of those arrows it looks like rally might continue a bit then the next grind down starts. Unless price diverges from the path I laid out of course.
So far the bitcoin market appears intent on grinding down despite quite regular good news (about venture capitalists, new technology, new adoptions and so on). When the bearish correction is finally over, all this will be a good platform for the next big rises when they finally occur.
Until then its hard to get bullish until I see the price climb convincingly above that upper red resistance line.
Zooming out gives a picture of where my channel came from ..