Having taken some time out to mull over the implications of the widening price spread between MtGox and the rest it's time to get back to what we do best. After-all, in the final analysis a market technician has to stay true to the faith that 'price and price action contains everything we need to know about market sentiment'.
So, here goes... The Bitcoin market has been on another rip; we've taken out $120, traded as high as $124, dropped back to re-test $120 as support and it has held.
This is how it looks on the chart:
Looking above the market, Bitcoin holders looking to liquidate or lighten their position in the immediate term should look carefully at $125 as a sensible point in price to do so. There will be sellers up here...
From an investment perspective, you can see that the market could fall as low as $110 without violating its bullish bias within the current context. So long term investors should be looking down at that rising channel support line for rational add-on points in price.
Finally, we wanted to leave you bitcoin bulls with further reasons to be cheerful. A look at this Daily time-scale chart confirms that the bitcoin market has formed a major, classic, technical formation that heralds significant further advances moving forward. Here it is:
The road here may be winding but...
Reasons to be cheerful, right?!
Rob @ BitScan