10K Dump!

With continued developer infighting on how to resove scalability issues and a fork of bitcoin having been created, ‘Bitcoin XT’ (or something) and in the absense of bullish world events, such as Greece default, or China stock plunge, bitcoin has struggled to keep bullish momentum going.

So its goodbye to the cup n handle formation I was anticipating, and instead hello to the 10K dump in which someone sold 10 thousand bitcoins on bitfinex, causing price to fall through bottom of my rising channel. This scene of disaster looks like this

Note the bottom of up rising channel which I was expecting support gave way which was a bit of a critical technical area, allowing price to plummet where we see now. I’ve added in new lower lines, hopefully we’ll see that the bull slope is still active albiet from a lower price point.

Interesting to note on weekly chart with log price that the bounce happened roughly at an area which previously was resistance when bitcoin was still below my bear trend line.

For now I’m on sidelines wondering like many others what will unfold.. New lower lows? Maybe, if the block size debate continues dragging along and turning ever more ugly. Or maybe a new rally spurred on by world events.. Maybe I need to consult my crystal ball.

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5 thoughts on “10K Dump!

    1. Hi James, good gosh no I haven’t sold all my bitcoins (or any in fact) .. Takes more than that to shake me out. By on the sidelines I guess I meant I’m undecided about short term sentiment, probably wasn’t worded very well.

  1. What do you think about a hard bounce off of the last bottom in January forming a solid double bottom. Could that be in the cards?

    1. Hi Bryan thanks for commenting. I’m really due another post but I’m looking at same trendline that marked the bottom last time, so far we are still above that.

      It does look a little like a double bottom at the moment but with second bottom at a higher price than the first one. I think 10K dump might have been an unsuccessful attempt to capitalise on the block size uncertainty and produce another waterfall down.

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