Short Term Update: 4 hour chart at MtGox

UploadImageIn last post i was thinking about a shakeout rather than a true breakout towards lower prices, well i think that we have just seen a strong shakeout after a bearish news for bitcoin (actually i consider it a positive news, i don’t like to see bitcoin associated to criminal activities of any sort). The volume average i’m plotting since the last major bottom of July worked out perfectly, the strong rebound from 109$ ended right now and it’s possible that a secondary reaction develops with a drop down to 125$ or so (testing again a static level i consider relevant).
Outlook for October is flat but any strength above 145$-150$ should carry bitcoin to my mid-term target of 165$-170$.


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