Friday, 7 June 2013

BTC Update - Saturday 8 June

It's been another tricky 24 hours for the Bitcoin market.  As predicted yesterday the next powerful bear thrust - on the back of the US Non-Farm Payroll announcement - defeated the recent low at $115 and while support at around $110 did it's best, we are currently trading below it.

As can be seen from the chart the sellers are gaining momentum and we are starting to accelerate to the downside: so what next?

Well, next support is just above $100. There will be limit buy orders here but it remains to be seen whether they will be sufficient to turn the market around.  Even if they are sellers will be amassing force above the market  - probably at around $115 - and buying pressure will have to be meaningful to carry us back up to test $125 at the first ask.

And if $100 gives, $95 is next before we get back to the longer term rising support line depicted in light blue.

So, what does this all mean?  Well, for those holding Bitcoin who need to convert back to fiat in the near term, $114 would seem a sensible point above the market that ought to be re-visited and rejected for bearish conviction to be confirmed.

Holders of fiat currency looking to jump into this market are already being presented with a potential bargain at current prices but I would advise caution for those considering trying to catch what is looking more and more like a falling knife. The brave will try their luck at around $100, but I would advise waiting until we have witnessed a strong reversal back above $120, or better still, stalled in place for a while.

In any case we shall keep you advised so stay tuned...!