Tuesday, 25 June 2013

BTC Update - Wednesday 26 June

The good news for Bitcoin bulls is that a sell-off which had been gathering pace, faltered at around $100 and reversed strongly back to the North.  This is how it looked on a chart...

Now, ultimately, this attempt to break out of consolidation was unsuccessful, but it will have given Bitcoin bears pause for thought.  It reduces the chance that the market sell off will resume in the immediate term and if, on the other hand, we have another good go at resistance today, there will not be as many limit sell orders to push through.

So what does this mean?

Well, if you are looking to get Long Bitcoin you are still more prudent to wait until we test and reverse off $98, but you could be forgiven for entering 'at market' around or above $104.

If, on the other hand you need to convert Bitcoin back to Fiat today, you could get out now but yesterday's price action might convince you that it is worth holding on for a retest of at least $112.  In the end it all depends on your time-scale but when the market does something unexpected it is often the pre-cursor to a change in prevailing sentiment and there is a growing list of technical reasons supporting the Long thesis at these levels.