Trendline reached

BITSTAMP:BTCUSD   Bitcoin / Dollar
With price falling sharply bitcoin price has reached a trendline which goes back a long way on log scale. For bullish scenario you want to see rebound off that line from hereabouts. Be wary of conceeding support as broken too soon though, small spike below that line would not be surprise. A run back up to top the channel could be on the cards.

If line fails to hold support, next support below that is the area where the previous bitcoin bubble finally peaked however bullish path marked by last green arrow would not be expected if price falls down there.
There are so many long-term trendlines... based on Bitstamp or on MtGox, based on linear or logarithmic, based on candlesticks bodies or on candle whichks, based on lines or average price.

I don't trust any of them to be THE ONE.
First of all, you drew it a little bit off. Even just a little bit can change the price at the trendline by $50. Your lines goes through some of the candles, so I think it should be drawn a little lower, which would put the target at about $240-$250.
Great chart! nice to see some long term perspective!
+1 Reply
afbitcoins jangseohee
Yikes didn't have to wait long to see that trendline fail !!!

Ah well was a nice thought tho.
+1 Reply
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