So, despite multiple attempts this week, the bitcoin market has failed to trade through $97.50.
Hmm... notwithstanding our overall bullish bias, this must give us pause for thought.
Here is the chart:
As you can see, $97.50 corresponds with the lows of the last topping formation and a minor inflection before that. A really powerful up-swing ought to have traded through this resistance zone with relative ease but for whatever reason bitcoin has failed to do so.
With this in mind, we suspect that another dip, probably back down to around $92, is on the cards as the market searches for new buyers. Indeed, any evidence of support at this strong support level would encourage us to increase our holding, in anticipation of a more meaningful charge at $100 and beyond.
Having said this, a decisive move below $90 would certainly cool our ardor and, as we have said before, all bets are off if we trade back below $85.
In the meantime, there is always a chance that we will just continue to grind on and through with no discernible dip - but based on what we see right now the odds of this are fading. On this basis those of you needing to convert to fiat are as well to do so right around here ('at market'). Whereas our advice to those of you looking for the right price to initiate or add-on, would be to keep your powder dry for the moment. The market is starting to look distinctly 'toppy' at $97; $92 would make far more sense and we may see it again within the next 48 hours.
Have a great weekend.