Wednesday, 29 May 2013

BTC Update Thursday 30 May

As predicted, having retested $125 as support, buyers flooded back in and the market pushed back through near term resistance at $130. As I write, we are trading at around $132 and a re-test of the recent high @ $136 looks probable.

So, on the face of it, recent consolidation looks like just that, another bull flag in the context of Bitcoin's ongoing uptrend.

However, as can be seen on the 4h chart, we are not yet racing away to the up-side, so while the current picture looks bullish, we need to see $136 challenged and defeated on momentum before the recent correction can be deemed as 'done'.

If, on the other hand $136 holds or worse still, we slip back below $130 and hold, bears will perceive a dwindling of momentum - represented by the double-top or lower high - and push for a retest of $125. If they are successful and $125 gives, $120 is next and deeper correction in prospect; all bullish bets will then be off for the time being.