Monday, 5 August 2013

BTC Update Tuesday 6th August

Hmm, so we're continuing to grind North, but it's oh so slow...

...and this leads us to suspect that another pullback may be on the cards.

Here's the Chart:

As you can see, the trend remains very much up and we are making progress back up towards resistance at $112, but momentum appears to be waning where we would expect it to be building.  And this is what leads us to suspect that the market probably needs to re-trace a little before we can make much more progress.

Does this mean you should dump your bitcoins?  Absolutely not - unless you absolutely have to liquidate within the next 24 hours.  All we are saying is that further acquisition at where we are currently trading is not, in our opinion, the best strategy as the market looks increasingly likely to offer a cheaper price before we climb much higher.

The green ellipse indicates the support area that we feel the market may test (around $101-2) over the next 24-36 hours and it represents a sensible place to pre-position a Buy limit trade, if you are looking to establish or add on to your bitcoin holding at a 'wholesale' price within the current, bullish, context.

Having said this a powerful dip much further South than this would test our fundamentally bullish bias in the short term as it would suggest that sentiment is actually pretty evenly matched at around $100.

Of course, none of this may happen.  The market may just continue to grind North and if it does, well that's just great.  But it's always wise to consider the alternate thesis as this allows a trader to maintain the initiative...

...and we are starting to look a bit 'toppy' for the moment.