It looks like bitcoin is trying to resume its recovery. It has broken through it's down-trendline, and with some umph, which is a great sign. It still has some hurdles to overcome, but it's late, NY is shut down, and Asia is just beginning to stir. So fingers crossed, it will resume it's trend.

News is positive with more investment talk, and bitcoin as a currency. So much so that the physical bitcoin vendor has been shut down in the United States (a little silly, but goes to show it's visible to more than a few enthusiasts.) These are all positive signs for the future.

Stay safe, control your risk, and the weekend is near   :  )

cj

As an example of a smaller trade, joining a larger trend (which can be done using the 15M Chart), I went long recently at 985 from the 1 Hour Reversal Signal.

I entered this trade with the expectation of joining the 4 Hour Trend. So now that I'm in, and it immediately went my way sufficiently for me to relax a little. With a little profit under my belt, I going to let this trade breathe a little.



Expecting to latch onto this trend.



I'll tell you how the trade progresses.

cj

I did notice that bitcoin does behave a little differently when approaching prior points of resistance. It seems to push through those points with more emphasis than I've seen on other markets.

cj

15 Minute alerts have been added to the system. If anyone wants more frequent signals, they can be added to your account. Also, this weekend, more advanced Investment Style signals will also be added. So if you are interested in those as well, please tell us in the zendesk system.

: )

cj

It seems after another tumultuous weekend, Bitcoin is back on the recovery path. News also seems to be settling in, especially with JP Morgan Chase filing a patent for another altcoin : )

cj

It just happened again. Bitcoin just pushed hard again through 850 and lower. Big selling.

*THEN* bitcointalk goes down.

It happened the last time when bitcointalk was hijacked.

So, the question is -- Is this a coordinated effort?

I'm not suggesting bitcointalk is involved, but is someone who is dumping, not want people talking about it while it's happened??

Always suspicious : )

cj

When I was watching the sell-off, I saw 100s per order printing. Sell 100, Sell 75, Sell 200... those are some big prints at 800-900 each.

Heavy selling coming in again. Pushing 850 and below.

Bitcoin just printed a volume exhaustion candle (which is potentially a good sign). The next few hours will tell if a recovery can be established.

Defenses trying to hold at 850s. But heavy selling.

Buyers are stepping in to hold the line.

Lower Fibonacci supports broken under heavy selling. Next line of defense is at 850.

Not looking good. Lower Fib broken with ghusto.

@SuperHakka, I like your style : )

cj

I agree that bitcoin is a currency, but its role is taking the place more as a commodity than a currency. People are using it as a holding vehicle hedged against fiat (and now perhaps gold).

In the same sense the US Dollar was used as a commodity. The Chinese government poured tons of money buying dollars.

The bulk of China’s exchange reserves, which reached a whopping $3.66 trillion by the end of last month, are held in dollars. China is the largest foreign holder of U.S. Treasury bonds with $1.28 trillion, closely followed by Japan at $1.14 trillion.

So there is an example of a currency used as a commodity.

: )

cj

I did mention that Chinese citizens can still buy and sell bitcoins. I also mentioned that it's not really a "scare", but just a temporary "startle".

Chinese people already have mechanisms to move big money out of China (much to the government's chagrin). So they will keep using bitcoin. I'm not really worried about it.

: )

cj

It looks like bitcoin is still struggling. There are a few scenarios where bitcoin could recover today or during the weekend. If any of them play out, you will get Private Messages through the Alert System. So keep an eye out.

: )

cj

Last night we put our traders on strong caution (do not buy), and unfortunately it was correct, and it's still on. Bitcoin is struggling. When Asia clocked in, it pushed bitcoin lower, Europe woke up buying bitcoin, then New York started selling again. Buying does not seem to be strong enough yet.

None of our systems are screaming BUY yet.

News is mixed with the debate between Bank of America, China and now Ron Paul (I think he just wants headlines.) There are several scenarios for bitcoin to recover, let's see how they play out.

Bitcoin is attempting it's recovery but showing weakness. I believe bitcoin has a chance to recover, and resume it's climb to a million dollars is buying steps in strongly. I believe China was a scare, but more like a startle. Chinese can still buy and sell bitcoins, but not through banks without Anti-Money-Laundering regulations in place (which is not unusual). Every country has done the same for the most part.

Plus I think Bank of America is mitigating the Chinese "startle". Let's see how it plays out.

As always, control your risk!

: )

cj


*Note: Long Term Trend is showing as Green/Up, but it is rolling over. Confluence has turned.

Now that I look at it, I should have emphasized stronger that the trade came from a one hour chart. When you look at that 1 minute chart, I look like a genius : )

But the signal was off a 1 hour chart. The zoom into 1 Minute was to show the anatomy (think autopsy of a failed trade).

But it's the same when you are watching a 1 hour chart. You expect that bar to climb, too much wiggle, too much hesitation is cause to become suspect.

Cheers, and control our risk!

: )

cj