Tuesday, 11 June 2013

BTC Update 12 Jun

Over the last 24 hours bitcoin has continued to grind Northwards, albeit at a snail's pace.

Every time sufficient weight of sell orders depress price, there are sufficient  buy orders below the market to turn it around.  That is why you see all those candlestick 'tails' on the 4h chart below.

Were we to switch a lower time-frame chart this effect would be more obvious still.

Having noted this, in terms of what next, we are still in an either/or situation.

On the one hand, the longer we grind North the more sentiment will favor bitcoin bulls and at some stage, the market will gap up to re-test $120; the next area where concerted resistance can be expected.

On the other, this market will not stand still. If current bullish momentum evaporates where we are expect a sudden push South; and if the market trades back below $102 for any period of time, expect a re-test of $95 - at least - with $90 and $85 beyond that.

It warrants saying that from an investment perspective, this market remains cheap. For more active traders a purchase at market, down to $106, continues to make sense with $120 a wise liquidation target should one need to convert back to fiat.