Short Term Update: 60 min chart

chartThe recent sell off has brought the bitcoin into some decent short term support; the top chart above shows the XBT/USD coming into support that is defined by the first deviation line of VWAP, computed using only last 7 days of data for a very short term indication.
The bottom pane of the chart shows the RSI in oversold territory but its average is higher and this let me think that there should be a retest of the $500 support level.
It would appear to me that strong support in the near term comes in around the $470-$480 price zone while resistance is at the VWAP, now at ~$530.

I don’t expect to see bullishness soon but there is the possibility that if $502 will hold then bitcoin will have enough energy to recover the $550 level before dropping again.

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2 thoughts on “Short Term Update: 60 min chart

  1. Arthur

    Thanks Enky. And for some clone coins this is not a summer slump anymore, but a slaughterhouse summer. Litecoin, once on $1,000M market cap, has now dropped further to just above $100M market cap. And Dogecoin, currently on $ 0.000119, is about to drop from the top 10 list (except that DRK, NMC and MAID are dropping almost as fast sometimes, so it’s a bit of a fight who will disappear first lol).

    Anyway, in a previous post I talked about a different timeframe comparison for the current bitcoin cycle: 2011-2012 cycle with 2013-2014 cycle. I found two graphs (with thanks to the original creators!), one that Stephen Reed found elsewhere ( http://i60.tinypic.com/4vrb7r.jpg ), and one on CoinDesk in the comments ( http://i58.tinypic.com/skyfxx.jpg ). They show exactly what I mean. For the moment I’m thinking we will have a long, slow ride to the next top. And I’m very doubtful if that top will come this year… I’m not expecting Wall Street this year anymore, but more likely next year, hopefully in the spring of 2015.

  2. Peter

    Slaughterhouse summer lol Ah well, maybe we were deluded. Reputable people within the community were throwing all kinds of price predictions for the end of the year from 2000 to 10’000. I’ve revised my thinking on Bitcoin a little. I think there are 3 types of Bitcoiners (investors). 1) The people who are obsessed, that includes people like me to your die hard evangelists, I call these the loyal people (the Hodlers). 2) Then there are the ambivalent people, I think this is the biggest group and what you may refer to as the sheep. They see positive aspects of Bitcoin but can’t fully understand or accept its nature, they may also be suffering from a struggle to detach themselves from there nationalism. 3) Then there’s the ones who are in it just to make a profit and don’t care about Bitcoin in the slightest, they take money out the moment they feel like have made an acceptable profit.

    I think that whenever we hit a bottom its a result of the the hodlers retaining the wealth. I think when you look at these 3 groups of Bitcoiners you can understand the large fluctuation in price as well.

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