Wednesday, 24 July 2013

BTC Update Wednesday 24th July

Despite the minor correction over the last 8 hours the latest micro-rally in bitcoin still looks good.

Here's the chart:

As you can see the market is currently probing descending resistance as support and we wouldn't be surprised to see the market to fall to the $92 area before more buyers are encouraged back in.  If you want to initiate or add-on to an existing position then within the context of the ongoing nascent uptrend this looks as sensible a place as any.

All young rallies look like this, with the market continually tricking participants out of positions through the illusion of a reversal, but every time more buyers come in to force it back up.  Eventually the majority of players get the message and the market picks up speed to the next significant technical barrier.

In the case of bitcoin the first upside barrier lies in the zone between $102-104 and beyond that just North of $110.

Having said this a rapid break back below $90 would be a minor concern of through $85 would put our current bullish bias to the test.

In sum, the next 24 hours will tell us much about the underlying strength of the market.  Having pushed through the significant psychological barrier of $92 we really do need the market to start gathering upside momentum within this time-frame.

Come on the Bulls!

Posted by Rob @ BitScan