Short Term Update: MtGox 4h chart

I was expecting a drop to 5$ but instead the bitcoin jumped quickly to 6$, since then it slowly dropped back to 5.5$-5.7$. I still think it could develop a bottom at 5$ and then rebound quickly back to the 5.5$-6.0$ zone.

I attached here a 4 hour chart, it is visible the rsi oscillator that is in oversold territory with negative net volume. This let me think that a quick bottom might develop followed by a strong bounce probably to retest the resistance levels at 6-6.2$

In the last three weeks we have had a negative outflow of money warning us that sellers are selling good quantities of bitcoin after it has recently spiked in price from 2$ to 7$ with a great deal of  capital appreciation. Despite this selling pressure with overall high volume the prices are still well above the recent low of november at 1.94$; i interpret this behaviour as bullish for long term.

Advertisements

2 thoughts on “Short Term Update: MtGox 4h chart

  1. geek88

    It is bouncing without a further drop, how should i interpret the oversold oscillator and negative net volume? symptoms of exhaustion of the previous downswing?

    1. Enky

      Yes exactly, later btc/usd reacted to 5.8$, before dropping to 5.3$ on an high volume bar, more then 200000 btc traded in 12 hours.

Comments are closed.