Long Term Update: Weekly View at MtGox

The weekly moving average turned slightly upward again after nine weeks of weakness, the BTC/USD after a strong bottom at 3.8$ is fighting to break through~5.1$.

 I’ve seen an increase in the buying pressure this week but i say again that without a proper breakout of the 5.1-5.2$ zone i dont think that the trend will reverse again to the upside going above the previous top at 7.2$, but at least the sequence of rising lows of the last four weeks is a positive note.

I want to do a consideration about the inflow/outflow of money during the recent strong upmove and the correction of the last weeks; during the upswing from the november low to january top more then 700k usd has been put in this market, while during the correction around 2 mln usd has been extracted, this is a lot of money and despite of that huge selling pressure the market retraced ~50% (from 7.2$ to 3.8$) without a collapse to the 2$ zone, usually a 50% retracement is a strong level of support.
But what does it mean? well i think that despite the fact that so much money have been extracted in the last 3 months the BTC/USD is showing great resilience and i think that a new wave of investors kicked in for the long term thus giving to the 4$ price level a great importance and it shouldn’t be violated this year. I think also that at MtGox there is enough liquidity to go double digit during the second part of the year, my guess.

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2 thoughts on “Long Term Update: Weekly View at MtGox

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    I love enky’s work, but have to disagree to some extend here on this occasion. More downside is coming I think.

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