Short Term Update: H1 chart @bitstamp

chartSellers are taking control of this market after the strong sell-off of this early morning (GMT time), at Bitstamp the market found a bottom at 542$, way below my support at around 700$. Since yesterday breakout of 950$ the market has been always below my short term VWAP, a sign that it is more bearish then bullish with every rebounce ending below VWAP as indicated on the attached chart on the left.

I’m planning to close this short term trade, at the moment i’ve a sell limit order at around $775 . For investors who prefer to hold the position open, it is important to close this week above 700$ and it is necessary next week to see a good reaction (with decent buying activity in terms of volume) to at least $900-$950.

The 50% retracement of this rally upswing (from $140 to $1160) is around 650$ and it is important because what the market do at the halfway level of a major rise or decline is crucial. The greater the move, the more important the 50% principle.
According to this Principle, if the BTC/USD , after all its fluctuations, can settle and hold above the halfway level, there’s a good chance that this end of the drop will rise, allowing the BTC/USD to test its prior high. But if the BTC/USD can’t settle above $650, then the odds are that it will sink further, taking it down to test or even break below its today 542$ low. In this event a bear market might start with a long term bottom around the $250-$300 price zone. As i said, next week will be important to see where this market will settle and hold.
Aniway, despite these considerations, and because at the moment i’m a bit uncertain of what will happen, i’m going to close my trade soon.

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3 thoughts on “Short Term Update: H1 chart @bitstamp

  1. PermaBadger

    Hey Enky, once again great post – love following you.

    I was wondering if you could share how I can set up these vwap indicators? I am using tradingview.com and not sure how to set up these multiple vwap dev.lines.

    Are you willing to offer assistance?

    This is what I have going right now. It is charting the gox exchange though.

    1. i’ve tried with btcusd and vwap on that website, well you can’t do much, the vwap reset itself at every new day, there are not much parameters to change this behaviour, vwap on sierrachart is much better, more customizable.

  2. Evey Hammond

    Hi Enky. Very astute, scientific observations. Great stuff. Can’t wait for your next post. Keep ’em coming!

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