Short Term Update: Daily Chart at Bitstamp

chartIt is clearly visible how much strength there is in this uptrend, the VWAP is the main support level and now it’s at 265$ and rising, the price breakout above 200$ has been important confirming the nature of the move as an explosive one, the target for this month is now at 420$ for bitstamp and i computed it as usual using actual volatility that is very close to the insane level seen in June 2011 top, when bitcoin moved from 50 cents to 32 usd in 2 months. I think that there is now enough buying activity to sustain this upmove and it will probably not repeat the crash happened last april, therefore i conclude that my initial target of 340$ will be cleared (it is already happenning right now at BTCchina where converting in usd price is at 416$).

For the bears, if there are any outside there:), the first bearish sign is a drop under 300$ then the penetration of the vwap under 265$ should confirm a reverse in the trend.

5 thoughts on “Short Term Update: Daily Chart at Bitstamp

    1. Enky

      hard to forecast, but of course i can use my formulas to forecast a target for end of the year, it should be around 490$-500$ at the end of 2013.

  1. Alcor

    What are you thoughts about the current sell off? Just profit taking after an overextended uptrend or could this signal a trend reversal? Price did bounce nicely on the vwap I noticed.

    1. Enky

      some profit taking, too early to say if the trend reversed , volume average level at 265$ worked out as support as expected. big support is at 200$-210$ that might be tested.

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