Monday, 24 June 2013

BTC Update Tuesday 25 June

Okay, so resistance at $112 held - for the time being - and this has sent the market South to retest the magnet that $100 has become.

Here is the chart:

We've annotated the 2 most significant bearish events from a technical perspective.  At point One the market breaks but fails to hold above $112, representing a fake-out against resistance. Then at point Two it trades through then falls below rising support.  This confirms a short term bear bias that, as we said at the top of this post, is likely to take us back down to technical support.

And on the issue of support we see a strong confluence of rising and horizontal support at $98.  This is where Bitcoin bulls will have placed their limit buy orders and so there is likely to be a reaction here.

Saying this, as we stated last week, a further significant downside correction was most likely to be triggered from a failure to clear $112 - which is exactly what we have seen since. Mindful of this we wouldn't wish to see the market gathering further downside momentum from where we are now, as this would risk carrying us through support and tripping the stops that inevitably lie beyond it.

In sum, this market needs to treated with caution.  If you are looking to get into Bitcoin watch for a reaction at $98 and make your decision based on what you see.  Otherwise, if you need to convert back to Fiat in the short term anywhere around $104 makes sense.

And Remember, should you wish to host Bitscan Market Analysis on your own site, just grab the widget on the RH side of this Blog.  Easy!