The market continues to stay above support at USD 630 but the trendless price action arising from low volumes is frustrating. The bulls and the bears are probably distracted by the upcoming holiday period and may not return with any conviction till Jan 2nd.
So stay long above USD 630 and short below USD590: this will give a little wiggle room to hopefully avoid...
The bullish candlestick reversal seen on the 19th is still intact and may signal the start of a new uptrend. BTCUSD price has rallied over the last 8 hours and despite poor volume, buyers show no intention of backing off. There is strong support at USD 630 - the piercing line of the dark candle of 18th Dec 2013.
Across many timeframes, moving averages are turning...
Following the alleged news from China on Weibo that Chinese banks are banned from funding BTCChina, BTC / Yuan prices are falling on BTCChina. BTCUSD prices are heading towards the bottom of the narrow range established in the last few days. But RSI is nearly oversold which suggests the recent downmove is overextended. We may bounce of the bottom of the channel or...
Stalemate: how I learned to stop worrying and love the trading channel.
We are seeing lower than average volumes at the moment on MtGox. Maybe due in part to the upcoming Holiday season but maybe buyers and sellers are 'stuck': buyers are waiting for prices to fall as 'bad' news emerges from regulators, banking authorities, China and the rest of the world....
Consolidating - Sell @ 850, Buy @ 980.
> Consolidation Pattern
Once again we are in a lacklustre market with price drifting sideways in a consolidation pattern confirmed by RSI which is rising in a narrow wedge. Both patterns will resolve once a new trend is established.
> Support & Resistance
I have no idea where price will go - yesterday's declines were...
Candlestick Pattern - Falling 3 Method
We saw this pattern develop 1st - 5th Dec 2013. It looks like we may be completing another one. This reversal pattern shows that buyers still do not have enough conviction to reverse the trend and it is typically used by active traders as a signal to add to their short positions.
Breakout Trade Idea - UPDATE
980 level is currently tested as support. However RSI suggests there is further downside to come. If this level fails, we may see the next level of support tested at 860. Watch RSI for confirmation of reversal in price.
Breakout Trade Idea - Update
Looking at the 5m chart we can see the recent breakout above the resistance level of 980 has occurred but is clearly losing momentum. Watch for a test of support at 980 to confirm this upmove. If support is not achieved at 980, then we will likely see prices move to the lower level of support at 860 and possibly much lower.
BTCUSD on MtGox has been stuck in a trading range USD 860 - 980 since yesterday. In other words, the price of bitcoin is consolidating with little conviction being shown by buyers or sellers. This narrow trading range is accompanied by low volumes, declining volatility and RSI is also consolidating in a wedge pattern. Both the price and RSI...
Prices are consolidating in a thin wedge with a lower rising support line. I believe prices will test the lower support line and then rally through the upper line to trigger my BUY trade at 906. Watch RSI for reversal from oversold levels.
If price falls below the lower support line then I will stand aside and review the next trade.
After successful trade this am, waiting for pullback in the uptrend to make a new long trade. When price moves upwards through 906 , I will go long again but risk reward is lower at 1:1 than previous trade because 'popular' sentiment is turning bullish therefore I believe further gains are limited. Target = 979 and Stop = 839.
Our long position is working out well and has already moved through the 20 day EMA resistance level and has stalled at the mid-point or piercing line for the candle of 6 Dec 2013. This level is key to overcome if the uptrend is to continue. Otherwise we are likely to revisit lower levels of support - today's low, 50 day EMA and 449.
8 Dec 2013:
> Reversal Pattern
Today's bar forms an inside day or bullish Harami pattern that indicates a trend reversal of moderate strength is likely. The higher today's eventual close, the stronger this reversal.
> Support & Resistance
Note that the 50 day EMA served as support to today's trading and the 20 day EMA offerred resistance in yesterday's...