Wednesday, 12 June 2013

BTC Update 13 Jun

It's been another steady 24 hours as demand continues to hold price in a gentle assent.

As can be seen on this 4h chart the market is continuing to grind North - although we have recently see a little rejection at the $112 level.

The big question is whether or not the new day will see a resumption of this push to resistance at $120 or whether we are due a retest of support.

To try and get to this question let's home in to the 1h chart for a closer look...

Here we can see that while price continues to 'channel' up, momentum is starting to dwindle and as I post we are right back at rising support.

Based on what we see here 3 possible scenarios present:

1. Rising channel support holds, initiating a fresh wave of buying.

2. Channel support gives and we re-test horizontal support at $104-106 - which holds, initiating a fresh wave of buying.

3. First rising then horizontal support give on an accelerating wave of selling.  In this case expect to see $95 again in fairly short order.

With these 3 scenarios in mind, unless you need to get into the market immediately, it might be worth sitting on your hands - or placing speculative limit orders at $104 - or even $95.