I have to admit, this one is a strange continuation of events. Now that we've seemingly created this double bottom
formation we've invalidated the clear possibility of a direct trend repeat from last time. Not saying it's not going to crash, just more than likely not in the same way it did before. We've seen tremendous amounts of resistance at $8500 as well as $8300 that's so far been enough to put a stop to the downtrend. If that's not enough, we really seem to be wanting to move into that $9600 range. Could this be another dead cat bounce? With this flag being higher than the previous it makes that a very difficult decision to make. To me, even though I feel very bearish
on the short/medium term this is clearly signs of bullish
reversal. As much as I'd like the price to free fall to $5600 and have this all be over, I'd be lying if I said that stance hasn't been slightly weakened by these events. If we see a challenge of $10,000 I'd be willing to say we're more than likely done with these downward price movements. Still, too early to call. On a side note, would we see Mt. Gox dump their stack at $10,000, dumping us back down to retest the lower resistance levels? Way too many variables at play here to make a solid decision, with far to much downside risk. While we're still overall in a bearish
market, could this be the bottom of a massive cup and handle
formation on the 12H? That may be a bit immature to put that together, but I've been blown away by the moves of this market before.