BTC Update Wednesday 11 September

Well, in our last post we recommended a Buy at $125.  Within 8 hours the price of a bitcoin on MtGox had risen 8 dollars and this is, essentially where we remain at the time of writing.

Here's how it looks on a chart:

As you will remember, the price action looked pretty ugly at the moment we advised a buy, but as usual, this is how it tends to look when a bargain is in the offing. This isn't to say that these signals always come off, only to underline that even those that do - never look pretty.  And that's the point, if it looks perfect the moment has generally passed.

Anyway, what does it all mean and what is likely to happen next? The bottom line is that it is very hard to know. While the bargain buying opportunity has passed, the market has struggled to defeat $135 and there is still no guarantee that we will retest the highs.  So, if you are already long, batten down the hatches and cross your fingers for more of the same.  If you are already long bitcoin and need to convert in the immediate term, go ahead and do so here.  Finally, if you are still waiting for a moment to get into this market our advice would be to keep your powder dry for the moment.  Other opportunities will come along but for the moment we are trading in no-man's land.