Tuesday, 16 July 2013

BTC Update Wednesday 17th July

Well, we gave the market 48 hrs to demonstrate continued bullishness through an upside breakout from consolidation and it hasn't happened.  While it is entirely possible that we will continue trading sideways we feel that a minor dip back to retest support is the more likely scenario, before sufficient buying power is triggered to generate the next up-swing.

Here is the chart:

For us this means that those needing to liquidate bitcoin for fiat right now will likely get the best price 'at market'.  Be clear, however, that this is not a recommendation to sell your bitcoin(!).  As we have said before, time-scale is everything. If you can hold on our strong recommendation would be to do so.

For investors, holders and those looking to buy bitcoin the current scenario offers good potential to get into or add to your positions at wholesale prices.  And the levels to watch are $92, $88 and $85 at the extreme.  Assuming the market does dip in the next 24 hours any of these zones have the potential to reverse sentiment and are therefore sensible places to pre-position limit buy orders.

As we have said for the last week, our Long/Bull bias will remain in place until/unless the market trades through $85 and doesn't reverse.

In consideration of the 'sideways' scenario we introduced at the beginning of this post, watch for the steepest (green) rising support line to come into play.  If the market trades sideways into this rising support we may well see new buyers trading against it which will generate a new wave of upside momentum, but this is over 24 hours off and we will have reported again by then.

That's all we have for now. To build a better understanding of our ongoing analysis, just visit our homepage www.bitscan.co and check out our archive.