Originally published in the Bitcoin BullBear Weekly Report on 7/30/2014. Partial excerpt only. Written by @AKWAnalytics.
BTC Market Commentary:
As we suspected might be the case earlier in the week, Bitcoin prices have remained under pressure as the medium term uptrend line was broken over the weekend and momentum continues to break down. We think this is a technical test of the bottom of the range with a short term target at the 540 $ double bottom.
The charts are still telling us that a breakout from the current 539 $ to 683 $ trading range is imminent, however the weakness we have seen over the past week has little to do with that. We think this current selloff is simply a technical move to ensure a real bottom on the 539 $ spike lows that will also wash out many weak hands and clean out the indicators to historically oversold levels. Putting all of this together, we still see no reason to deviate from our longer term call for a resumption of the bull market on the way back to 1000 $, especially given that only a breakdown below 400 $ would turn us long term bearish.
The strong fundamentals of the bitcoin ecosystem and the continued stream of good news surrounding the technology give us reassurance that the bitcoin market is now in an unprecedented phase of indecision that will eventually be resolved with significantly higher prices. In the meantime, however, choppiness, spikes, and false moves will continue to characterize the market in its current state.
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