Monday, 17 June 2013

BTC Update Tuesday 18 June

The bitcoin market has enjoyed a very quiet and relaxing weekend with volatility evaporating as we languish around the $100 mark.  This is how it looks on a 4h chart...

As long term rising support and shorter term descending resistance converge we are starting to see the boundaries of the market's current range pretty clearly.

Below price a strong support zone is in place between $93-$98.  Whereas above the market sellers will have arrayed their limit orders between $112-120.

In the immediate term, the slight gathering of upside momentum is likely due to the fact that investors are starting to worry that price isn't going to re-plumb the recent low. Scared that they might miss the boat, they will be jumping in 'at market'.  This isn't actually a bad strategy as if we manage to trade and back through $104 and hold above it, the market could quickly gather pace to the North.

With this in mind, holders of Bitcoin needing to liquidate would be sensible to place their orders up at $112, if they can afford to hold on, as another test of this resistance area is looking increasingly likely within the next few days.

Having said all this, the market might have 'found its level'.  If $100 has become the new $10 we could trade sideways for the foreseeable future.