Short Term Update: MtGox daily chart

This is a short term view of the last 30 days,the market is still  fighting to go stay above 4.7  and to break above 5.1$. I’d like to see an increase in volume activity and the BTC/USD going above 5.3$ but at the same time the drop of volatility reduce the risk of this trade that i opened 1 month ago at 5.06$, at the moment it’s a stall in a long congested phase from 4.7$ to 5.3$

As you can see in the chart even the net volume is dropping signaling that buying in the last 3 days  is going out of steam, i think that a new drop to 4.8$ is possible before rebouncing again; in any case for who want to give a try i recommend to apply a stop loss under 4.7$ and sell at the resistance around 5.2$-5.3$. For this week the range is the same of the previous week , support at 4.7$ and resistance at 5.3$

When the volatility is so low most of the time is very difficult to have a profit following the indication of an oscillator like the one i use because the underlying noise is equal or even higher then the signal; you have to wait for an exploding volume and a rising price, two important factors that statistically may lead to further advancing prices like what we’ve seen happening last January.

Definitely a very boring period for short term speculators but i remain bullish for long term.

 

Advertisements

3 thoughts on “Short Term Update: MtGox daily chart

  1. geek88

    Yeah, definitely a very boring period, we have had a very low volatility for the last 2 months and i guess anyone else getting annoyed but i see bitcoin stable at 5$, it is rising 5.10 at the moment maybe it will not fall to 4.8 Enky but it will retest the resistance at 5.4$. Cheers

  2. ken

    With this low volatility I think it’s more important to follow developments in the bitcoin economy. Transaction volume in the network keeps increasing and new businesses are starting up. I am long-term bullish on bitcoin.

    1. Enky

      As i said in previous posts i’m bullish too on long term, all the resilience shown during the drop from 7$ to 4$, considering the huge volume on the sell side, tells me that a 4$ is a solid support, long term target from 8$ to 10$ for this year.

Comments are closed.