Long Term Update: MtGox

The USD/BTC  is falling, following a descending trendline that is connecting all the way down the last two weeks sequence of lower highs. So far the 13$ level is providing support but i dont think it will hold the price for too long, as long term support i like the 9$ level that was an important previous resistance now of course support.

That descending trendline will meet the 9$ level around next 20 July, so at that date or before the usd/btc is going to test this fundamental level. I think that only a major shock will allow the development of an important low where to begin again a new season of rising prices and it will not touch the 9$ support for then simply bouncing from it, i expect a rise in volatility and strong volume around it that might allow to buy during a strong and fast dip under 9$. Usually a buying opportunities in a bull market generally arise when the market drops below its 50 day moving average (13$) but remains above its 200 day moving average (4$ ). I think just such an opportunity might lies ahead with this upcoming test of the 9$ level.

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2 thoughts on “Long Term Update: MtGox

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    Enky,

    Very nicely done.

    And you are right – if btc/usd pulls back from approximately 14.85$ on the trendline, this will confirm the downtrend with the constant failure to break that line. 9$ is in the eye.

    EVERYONE KNEW the market had to decline.
    Well, almost everyone.

    Thanks for the blog, Enky. It is much appreciated.

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