Monday, 3 June 2013

BTC update Tuesday 4 June - Asia

We'll start with a shorter time-frame chart (1h) today as it demonstrates the significance of the last 24 hours, every one of which saw bears push and attempt to hold the market beneath $120.

The fact that this failed tells us that there are significant buy orders around and beneath this key price point. Bitcoin bulls will take much heart from this and it wouldn't surprise me to see the market re-test $125 as resistance in fairly short order. Viewed from this perspective Bitcoin could represent a real bargain at these prices.

Having said this anyone tempted to jump in should note that there will be selling pressure at around $125 and again, at and above $130 - either of which could send the market back down to retest yesterday's low.

As you can see from this Daily chart, while we remain below the rising support line that became resistance on Sunday, the longer term bullish argument remains in doubt, with $136 a swing point of growing significance.

Having said this the technical picture is significantly more bullish than this time yesterday. So in sum, if you want a potential bargain buy right here - yesterday's repeated failure to push lower is a good sign - but be clear that we aren't out of the woods yet. If, on the other hand you aren't convinced, then you should sit on your hands until we trade back above $136 - understanding that this decision might cost you at least $16 a coin.