Here is tonight's Bitcoin technical and market update.Please donate here if you wish to see it continued:
here is the link to view the charts: http://bit.ly/q3UQ9W
Midterm: UP as long as the 9.5 $ - 10 $ range holds
Shortterm: UP from the 12.5 $ low and down sloping channel resistance.
Overall, the forecast about a bullish consolidation and subsequent breakout to the upside has materialized. While the very short term pattern turned out somewhat different to the option presented in last analysis here (bullflag extended further to the downside), the overall direction was correct. Bitcoins are back in a bullmarket on all timeframes.
It is always important to look at the longterm picture before falling into the trap of drawing too short term (and often wrong) conclusions. In German language, we call this "you don't see the forest when you stand in the middle of the trees".
Both, the long and mid term trend are clearly up. The chart below shows that the move down from the all time high of 31.9 $ is corrective, not impulsive. Based on chart analysis tools, Elliott Wave patterns (not shown) and volume patterns, this view is the preferred scenario.
For example, both, the chart pattern and the volume development indicate that the entire move down from 31.9 $ is a consolidation with the most likely resolution to the upside and new highs in weeks/months.
Shortterm, and as predicted especially in the subscription service (http://bit.ly/mjP1Rh
) , a big rally came last night with strong volume. Most of the 12 day downward consolidation was retraced within just 3 hours, a strong bullish move.
BTCUSD are now consolidating this move and likely will move up into the 17 $ - 20 $ area.
The BitBulls are in control now, as long as the 12.5 $ low 7 down sloping lower channel line holds. But even if this channel support falls, there is much more support in the 9.5 $ - 12. 5 $ cluster, as short and midterm support levels run in this zone.
Trade Bitcoins well!
Disclaimer: Please always do your own due diligence, and consult your financial advisor. S3052 owns some bitcoins. Never invest unless you can afford to lose your entire investment.