Bitcoin Price Testing $500 – Have We Seen The Low?

April 15, 2014 12:34 UTC
Daily Bitstamp BTCUSD chart.

Gone Long

As Bitcoin price seems to have bounced, I entered a long position at $465 hoping for further upside. My target for taking first profit is at $755, halfway between the All Time High and most recent fractal low.

After a long time out the market, it feels good to be trading again!

The Low?

It wasn’t surprising to see Bitcoin bounce around $380 for the 4th time since it broke that level to the upside. This $360 – $380 support level seems to be the line in the sand.

I’m taking anything below $339 as my stop-loss trigger.

After a long and bloody bear phase, I’m sure many would welcome some bullish action. Three tall green candles out of the last five suggest the tides may have turned.

April 15th

On a day many forecast would be disastrous, the Bitcoin price is proving buoyant. Right now, price is testing the $500 mark on BitStamp.

Whether the blood moon holds any significance for the Bitcoin price, it does happen to fall on this date.

Resistance

There is now a confluence of overhead resistances to overcome:

  • the previous fractal high at $510 (white horizontal line),
  • a longterm downtrend drawn from the All Time High (red slanting line), and
  • the 23% / $532 level on a Fibonacci Retracement drawn from the ATH to the most recent low.

If all these resistances are broken to the upside, I’ll take that as a signal to add to my position.

Bullish Arguments

In a recent article, we asked CCN readers for their take on the bounce. Mention was made of the new Chinese Bitcoin ATMs now popping up in China along with new exchange funding methods. The fact that the markets have been in a protracted downtrend and are now ripe for a recovery was also stated. I’d like to quote Patrick Dugan’s reason as to why markets are soaring,

Because there were more buyers than sellers. These sort of violent 20-40% rallies can happen in bear markets, with periodic 25% declines accumulating to some lowest low that then slowly becomes higher lows, and then you’re off to a new trend.What will indicate whether or not this rally is the 1st wave of a new bull trend, is whether or not it can break the series of lower highs. If it does, you might wait to buy the retrace.

Couldn’t agree more! So, at least on the daily timeframe, the next lower high Bitcoin price must overcome is at $510… I’ll definitely be watching this level closely and rooting for price to begin a new uptrend.

[Update: it just reached $511, so next challenge is the long term downtrend line]

Bitcoin price chart generated on Trading View.

Blood moon image from ZME Science.

Last modified: April 16, 2014 11:18 UTC

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