BTC Update Thursday 20 June

In the immediate wake of Bitcoin's most recent Bull run the last 24 hours have been underwhelming.  The market managed to post a lower high of around $110 during the European forenoon but settled back as the US markets opened and braced themselves for Fed Chairman Bernanke's statement.

This is how it looks on the 4h chart...

On the one hand, that lower high will be worrying bulls; $112 has been rejected and this could well herald a further test of support at $104.

On the other, we are still seeing plenty of new buyers enter on intra-bar pullbacks and the short term trend remains up, so it isn't all over yet by any means.

For a closer look let us home in to the 1 hour chart...

As can be see more clearly here, a steeper rising support line now bolsters horizontal support at $104 - which is going to make it a tough nut to crack.  If the market retests this area it's going to find plenty of limit buy orders to soak up the pressure.  If you want to get Long Bitcoin in significant size this level - or just above it remains a sensible price point.

Above the market, $112 looks an equally imposing swing point for opposing but identical reasons.  Indeed, if we are going to push South through $104 to retest $98, the move is most likely to trigger from a powerful rejection of $112.  With this in mind, it remains a sensible hopping off point for those needing to liquidate Bitcoins in the near term.

As it stands the current scenario looks more and more like accumulation to us and if we carry on as we are, the Bullish reversal play will continue to gather credence with more and more market participants...