Sunday, 30 June 2013

BTC Update Monday 1 July

It's been a relatively quiet weekend for Bitcoin.  On the one hand support for price has continued to come in below $95 - albeit on low volume - and as I write the biggest exchange is still quoting $97.

The fact that we didn't crash through this support zone represents good news for Bitcoin bulls, but the bearish scenario outlined in our last update is still a strong possibility.

Here is the chart again:

As can be seen here, the modest bounce that we have witnessed thus far does not represent the vigorous rejection of support that bulls will have hoped for - yet - and as a result, the bank of resistance above $100 is hanging over the market like a dark cloud.

Viewed from this perspective, the price band between $100 and $104 still represents a sound area in which to liquidate bitcoin in favor of fiat and only a swift and powerful move back above $106 is likely to shake the bears' resolve.

If not already long bitcoin you would be wise to sit on your hands while the conclusion of this latest consolidation pattern plays out, as the odds currently suggest that a better price may well be possible at around $80, later in the week.