Thursday, 6 June 2013

BTC Update - Friday 7 June

The news going into Asian trading today is that the Market has broken back below $120. Unless bullish sentiment can re-assert itself in short order the market is likely to continue South and re-test the Week's low at around $115. There are bound to be buy orders at this price point and a bullish reaction. If you are keen to buy bitcoin today, this is a sensible place for your limit order.

Having said this we are still starting to detect a growing series of 'lower-highs', indicative of the fact that every time the market rises to challenge resistance, selling pressure is earlier and stronger than before. Viewed from this perspective that recent low at $115 could give at the next concerted bear thrust.

In case the market does manage to push South I have indicated on the Daily chart where I see technical support below it. Specifically, watch $110 and $100. Anywhere South of $100 will present a huge bargain within the context of the current long term up-trend but remember, the further we fall the greater the chance that a 'bull trap' will reverse the market decisively. Don't be caught out. Place your limit buy orders ahead of time!