Friday, April 11, 2014

Bitcoin Market Update 4/11/14

Yesterday was rough for the Bitcoin Market. We had a large drop down to $340 followed by a quick bully rally up to $430 this morning. If you have been following my tweets, you would have known to be short during the past few days. If you had been trading short on leverage at Bitfinex or Plus500, you would have been profiting quiet a bit (use referral code cgSJVGkGHV on Bitfinex for 10% off your first month!) 

Here is a chart I have been working with for the past few weeks. The dotted red lines are historic resistances and supports. The solid red lines are historical trend lines. Since the high in December, we have been consolidating in a descending triangle pattern. The good news from the sell off last night was that 340 held, and now the consolidation pattern will likely continue. The dashed light blue lines are prediction lines a drew a few days before this most recent sell off. While we went lower than I anticipated, I still think that we will continue to bounce around in the 340 - the solid red trend line and complete the triangle. Watch for high volatility as our trading range gets more narrow. In the short term I'm predicting volatility. Also, I think we will probably break up and out of this triangle. There is a smaller risk of breaking down though. Watch for the resistance levers around 260. If we break below that we could easily revisit double digit prices.


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