Monday, 1 July 2013

BTC Update Tuesday 2 Jul

Another quiet session yesterday but Bitcoin continues to leak value.

Here's the chart...

As you can see the US session saw price sink back down to support at around $93.

On the one hand, as long as this level holds, it remains a valid entry point for anyone wanting to acquire Bitcoin.  On the other, the buyers simply aren't coming into the market in any strength; as a result we haven't yet managed to mount a concerted test on $100 (as resistance) and the area between $100 and $105 is starting to resemble a formidable barrier hanging over the market.

It may be that potential buyers are intent on holding out for a lower price still, perhaps the confluence of support at $85-88.  And a fall to this level is starting to look increasingly likely without evidence of the buying power required to drive us away from current support and the inevitably increasing weight of sell orders that will be building in that resistance band above the market.

In sum, everything we currently see on the chart would suggest a move lower in the short term.  The only event that would shake this synopsis is a swift and powerful up-swing that pierces resistance and tests the top of the range, up at $112.