Thursday, 4 July 2013

BTC Update Friday 5th July

From yesterday:  "If you can muster the courage to grasp this falling knife, you may yet look back on the 4th of July with a grin."

Well, the good news for Bitcoin holders is that while the market tried to trade through key support @ $72, there were sufficient buyers to drive it back North.  The bad news is that this renewed upside momentum has failed to close and hold above the nearest band of resistance @$82.

Here is what it looks like on the Daily chart...

As you can see rising support has become resistance.  The longer this holds the more likely that it will trigger another wave of concerted selling, which will inevitably take us back down to retest the low - and if that goes...

Having said this, if the market can claw its way back and hold above $86 bullish confidence will build and a re-test of the next big resistance zone at $92 gets more and more likely.  What happens there, if indeed the market makes it this far North, is too early to say.

For the time being, the key price points to watch are $70 below the market and $92 above it.