Posted by: pesa_mic
May 27, 2015
“It looks like this bull market is in a “measure twice; cut once” advance mode. As in before it advances it has to hit the previous level of support to make a climb past the next level of resistance.”
Since finding a bottom at $213, EMAs have offered support for higher highs and lows on the up. Despite this, volumes have been declining ever since $315 peak in February and continue to thin. Bitfinex weekly volumes for instance, have been under 100,000 for 2 subsequent weeks. Over the last 8 months, this has only happened 2 other times.
Bitfinex made headlines after a successful hack on one of its hot wallets, used for bitcoin deposits. The exchange took a hit of 1301.9313 BTC, representing about 0.5% of user’s deposits. Via an announcement on its website, they admitted fault and communicated a decision to absorb the loss while reassuring customers their passwords and deposits were secure.
“Although this incident is unfortunate, its scale is small and will be fully absorbed by the company.”
Bitgold, blockchain startup, acquired a leading Gold payment startup for CAD $ 52 million. According to an article by Bitcoin magazine, BitGold intends to facilitate digital gold payments via the blockchain in what has been termed ‘Gold 2.0’.
Bitcoin Price Forecast
This week, I am still bullish on my short term expectations, however, with caveats and caution. Looking back at this image from my previous analyses, I have been tracking several price points as significant for price movements. For good measure, we can observe the conviction of this move from how it responds to these points. Rejection? or break?
Firstly, given higher lows and higher highs in the recent past, I see this trend continue upto to targets of $250 as a first, then possibly $267/$270 thereafter (if we make it that far). Price has been creeping up a support line from $166 bottom,and so far it has held, albeit at times weak
So it looks to hit $235 and then slowly climb above $245 only to fall down to $240 and then up to $250
Secondly, watch $228 level keenly. Stop hunting is a thing. Like last week’s low at $229.
Convincingly breaking $225 support would invalidate this forecast.
Trading is really about controlling your emotions once you have a target, invalidation points and a forecast of expected price movement. The market may prolong and exhaust, but as long as levels hold, there is no reason to exit.