Bitcoin prices have been consolidating at the base of this downward trend. $200-$210 is an integral area of support. If it holds and we rally upwards we may get a bullish trend reversal. Breaking $300 is my indicator of being in a new bull cycle.
Comments
FrankLawton
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i think this a good chart as using monthly figures and your triangle highlights what I see as happening ie all those that chased the bot up to 1000 are slowly having to cut their losses and getting out. I do not think the price is "consolidating" as such it is more that the more it goes down the slower it moves down which just gives the appearance of consolidation. If you drew the bottom red line from the sept 2013 mark ($122 about which is less tainted than the Nov point ) I think you will then be mapping the next few months which I see as price moving to this sort of level ie $120-150 by about August using your diagonal line intersection point.
BTCcoinsultant
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Interesting points indeed and you may very well be right. My reasoning for drawing the red trend line where I did, was because I wanted to catch the base of that major parabolic move. If I remove the willy bot bubble out of the picture and factor in inflation with industry growth, I think we're probably at a fair valuation.
We appear to be holding strong support between $210-$219 and as long as prices stay above this area we'll most likely reverse the trend. If on the other hand we start to test $200, then you may be right because if that fails panic selling will ensue. Given the rate at which the industry is growing, I'm still bullish. That said if we drop to your suggested levels I won't complain because it will mean cheaper coins to cost average my long term investments. Thanks for your feedback.