Short Term Update: MtGox

I already explained in the past that  once an ascending triangle breakout occurs the most common price target is generally set to be equal to the entry price plus the vertical height of the triangle, in this case 12$ plus ~5$ equal 17$.

Looking the 4 hours chart here on the left i expect the breakout to occur in the next 48-72 hours; if not then the outlook provided by my elliot wave software will be right again, this outlook has always been bearish on the longer time frames after the 32$ top in june (more info to come on the next long term update).

At the moment I am not very impressed by recent bullish action since it was expected after a huge sell off, it is a normal bounce. I’m curious to see if the bitcoin conference currently held in NY will attract new investors so to ignite a new strong rally in september, or at least to break in the short term that ascending triangle pattern.

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One thought on “Short Term Update: MtGox

  1. bobo

    Thanks for the update, i think the big question right now is whether the US economy will be able to avoid a recession; a recession that will hurt bitcoin economy too, the stock market drop is unfortunate in itself, the fact that main street is right now following wall street is more disturbing. We just got out from the worst recession since the 1930’s and now another one is coming. There was something odd in itself about this recession, commodity prices never stayed low. After the recession that ended in the 80’s Gold dropped from over $700 to below $200 an ounce, oil dropped from $48 a barrell down to $8 or $9 and it stayed low. The economy and stocks boomed while oil stayed low. I ask to myself if people will see bitcoin as a safe place where to invest in troubled times.

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