Long Term Update: Daily Chart at MtGox

UploadImageBTC/USD fell under a mid term VWAP, at this point it is pretty obvious that bitcoin is entering in a bear market but i think it will not repeat the extreme drop seen in 2011 (as i stated in a previous update such a drop will mean a bottom around 18$).

Abundance of mined bitcoin are flooding the market and there is not enough supply to stay above the VWAP (now at 97$). A positive aspect is that at least the VWAP is not trending lower but it’s flat at the moment. The first decent support is at the first deviation line, around 60$ and i don’t expect the price to fall under it this July. Resistance in the short term is now 90$, that it was previous support in my last short term update. To conclude, i do not recommend to buy at the moment; eventually at 60$ if the market rebounce i might decide to open a long position, with extreme caution because  grasping a falling knife is always a risky business.

Advertisements

6 thoughts on “Long Term Update: Daily Chart at MtGox

  1. Why don’t you open a blog for stocks? I’d be very interested to see these kinds of tools used on proper investment vehicles.

  2. You were (once more) right: reached 90$ target. Now I guess if we surpass it with strength we can expect a change to uptrend and otherwise it will go down. Is that so? how likely do you see each scenario? And how deep will it crash if we cannot breach 90$?

    Thanks mate

    1. Hi, it’s hard to say if it will go higher, btw i’ve around 95$ resistance now, if we see strong buying volume above 95$ then probably this market reversed again to the upside.
      I’ll post an update when possible.

Comments are closed.