We have gone up a little too fast and just like in January and in March it's time for a pull back. This post is coming in two days late as i have shorted bitcoin at $300 and announced it to the audience of Inside Bitcoins Chicago conference during my presentation on Bitcoin Speculation 7/11/15. This is also a temporary short as i am intermediate and long term on Bitcoin .
What i'm looking for is a pull back into the Cross of the Moving averages. There is now plenty of support in the $240-260 area and the ideal textbook move is to fall into this zone. It is definitely big enough to profit on the short side so i'm looking to do just that. If it falls under $250 I will start to get nervous and depressed once again as i really hate to see bitcoin drop in price and also hate to see it go up exponentially. (just want a nice stable increase for the benefit of the ecosystem)
The still looks very healthy and we had an uptick in which is good. The however has been overbought for way too long and has just broken the trend-line with plenty of room to the downside.
Bottomline: Short at $300 looking for $260 and then plan to go long at the $250-260 . Because the trade is now in the Money for me, my stop loss is at breakeven of $300 but technically the trade is a failure with New Highs.
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