I enclose here on the left the weekly chart of the BTCchina exchange of the last 6 months, converted from CNY to USD for your convenience. On this chart i have highlighted how the break of resistance at $ 135 has been followed by a strong rally all the way up to 1240$. Analyzing the net volumes we can see that this week is the first with negative volume activity and could be an early sign of the weakening of the trend in progress.
I think that the ALMA moving average should provide some support around $ 680, also with the formulas i use to calculate weekly and monthly price range i have the same value, around $700 as support for December.
I think that bitcoin will remain in a bullish stance as long as it stays above $ 700, if i see a further drop under 700$ with an increasing negative net volume activity then i’ll probably close my position opened in late August at 140$.
I know that there are out there scared or nervous investors because of the recent insane rally but i think that bitcoin is something new and it can’t be compared too much with other conventional assets (gold, stocks, bonds..) so because of a 1000% move from 120$ to 1200$ it doesn’t mean that it’s all over yet. I’m not scared to hold my long position if i consider the true potential of this new tech sector: cryptocurrencies.
We are at 1k usd but it’s not even yet started with institutional investors still at the window observing bitcoin, i can say this for sure because i’ve contacts in Schroeder, a global asset manager company, and they are monitoring Bitcoin very carefully.