Thursday, 1 August 2013

BTC Update Thursday 1 August

As we predicted yesterday it's been a pretty volatile 36 hours for bitcoin, since the market had its first go at $112 resistance.

Here's how it looks on the Chart:

Having warned you off jumping in at the highs we also noted that support was likely to come in against rising support at around $105 and while the retest of this area as support came more quickly than we predicted, so far this level is holding up and as we write, the market looks to be pushing off it nicely for another run up to the highs.

And this, as regular readers will have grasped, is how a market works; if it cannot make progress in one direction it will head off in the other to retest the last limit in order to see if it will give at the next time of asking.  The trick to trading consistently is first identifying and then trading away from these edges, sure in the knowledge that you will be entering trades at wholesale prices - and this means bigger profits when you are right and smaller losses when you are wrong.

Anyway, back to the present, the best time to get long was clearly $105 - as advised yesterday - but its still not too late if you are quick.  Next resistance remains at $112, where we will see another wave of selling - although not perhaps as powerful as last time.  If we drive on through on this occasion it gets noisy but $120 is definitely in view.

If, on the other hand we fail again at, below or even just above $112, bullish sentiment will suffer and we may well be back down at $105 in short order.