Wednesday, 14 August 2013

BTC Update Wednesday 14th August - Go Bitcoin!

We've enjoyed a good run here at BitScan of late. On 25th July we advised a BUY following a rejection of support at $91.  Then on 6th of August we called the subsequent dip and indicated a potential 'wholesale' BUY against a successful rejection of support at $101. Yesterday we advised that the run up to resistance at $112 was on.  So far today the market has traded as high as $114 and is currently trading at $112.

This is how it looks on the Chart:

This is all very well but what can we expect moving forward?

Well, the first thing to note is that our overall bullish bias remains intact and this will remain the case until or unless we trade back through $101 on real oompf.  However, this doesn't mean that there won't be bumps in the road from here.  Indeed, the space between $112 and our next upside target of $120 is pretty noisy, with little in the way of well defined inflection points.  So, active traders or those needing to convert to fiat in the immediate term would be wise to reduce their exposure to bitcoin right around here.  While the market continues to probe resistance at $112 we aren't decisively through it by any means and a dip back to $108 - or further - is entirely possible if the weight of sell orders at or above $112 tilts the balance of order flow back into the negative - if only temporarily.

For bitcoin investors the scenario is different. So far, all the evidence we have suggests that last months low at around $65 marked a climactic extreme that has heralded the reversal of a downtrend first established back in April.  While the market could go parabolic (up) from here you needn't be worried about your investment unless we trade back below $85 and we'll endeavor to keep you apprised of sensible points at which to add-on to your position at wholesale prices as the price action unfolds.

For the moment though, and however you participate, this is a great market to be involved with. Go Bitcoin!