After having a fresh look at the btc-e log chart just now Ive decided to change some lines around on my chart. I’m now thinking better top trendline would be the one shown here which is probably the more obvious line to pick.
Here it is, the chart this time shown with 1 week candles
Overall idea is the same with price constrained in a kind of triangle and / or
downsloping wedge. A slightly different singularity approaches if price stays constrained until then.
My new upper line is slightly higher then one I showed previously. If price were to rally to the top line that would be up slightly above $380. However price is dipping as I write this down over 3 percent. You might make out another resistance line I’ve shown which price will have to get through first if it is to rally up there.
Heres a closer look at that minor resistance line, this time chart displayed with 1 day candles
The blue dashed line on there will hopefully be quite a solid support line which corresponds to the April 2013 bubble peak.
If price breaks down through that and the wedge pattern it looks possible it could head fair bit lower. On top chart I’ve shown another horizontal area at about $120 where support may be found if it goes there. Could price really drop that far! I can’t really say I feel confidently bullish at the moment with the failure of the long term log channel fresh in my mind.