Bitcoin Stabilizes as News Flow Slows

Originally published in a Bitcoin BullBear Market Update on 10/1/2014.  Partial excerpt only. Written by @AKWAnalytics.

Market Commentary (BTC):  

Compared to the past month, the past week has been relatively mild in term of news flow and price action. We find this interesting given that when the good news was pouring in, prices were cratering, but now that the news has subsided, the market has stabilized.

We are not sure if this phenomenon has any relevance in terms of the longer term forecast for bitcoin, however we do find it curious and somewhat telling in the short term. It does is help explain the large bullish divergences in RSI and MACD, and it tells us that bearish momentum is waning and news is having less and less of an effect.

With that in mind, the short term technicals are saying that there needs to be a retest of the 365 $ low to confirm it is real. Our suspicion is that the market will breakdown through that level on the way to a panicky low above 300 $ and below 339 $. Again, we view 300 $ as a long term gift and will use it as a buying opportunity.

Cheers,

@AKWAnalytics

BTC/USD weekly log chart


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awyattBitcoin Stabilizes as News Flow Slows