The bulls are turning into bears (Measuring trend strength) Short

Bitcoin / U.S. dollarBitstamp

Description

⋅ Jun 20, 2014 1:21 PM

We were starting to go over into a uptrend after leaving the bottom at 550 US Dollar, but because we broke through the 600 US Dollar area, when Bolivia announced that they are banning Bitcoin [1] and meanwhile Bitcoin exchanges like BTC-E [2] and Bitfinex [3] have still trouble with DDoS attacks on their service providers CloudFlare and Incapsula making trouble for trading bots (and there are also still discussions regarding the 51% issue with GHash [4]) I expect a downtrend to follow, after we didn't break through the resistance around 620 US Dollar [5].

I fear the 600 US Dollar neckline (which I described earlier in my chart named "BITCOIN - LEAVING INVERSE HEAD AND SHOULDERS") turned from a support area into the new resistance zone which we are currently bouncing against in the 1-day chart.

[1] coindesk.com/bolivias-central-bank-bans-bitcoin-digital-currencies/
[2] twitter.com/btcecom/status/479884231251066880
[3] twitter.com/bitfinex/status/479574324761079808
[4] coindesk.com/51-attacks-real-threat-bitcoin/
[5] tradingview.com/v/b9xmUSDJ/

Bearish Patterns

Comments

ChartArt

⋅ Jun 24, 2014 2:11 AM

UPDATE from early Tuesday, 24 June:

Maybe the downtrend is finally increasing after 3 days.

rizlas

⋅ Jun 21, 2014 2:55 AM

Bearish it looks... I estimate about around 80% chance we hit 550 in 3 days but doubt we'll go lower unless any bad news come up

ItisCalvin

⋅ Jun 21, 2014 1:16 AM

Ah the bears are growing again. But we have not moved. I am curious what will play out over the coming days.

ChartArt

⋅ Jun 20, 2014 5:06 PM

UPDATE

Just 3 hours later after creating the above chart, the other indicator also turned bearish, as well as the 1-day bar.