Originally published in a Bitcoin BullBear Market Update on 10/29/2014. Partial excerpt only. Written by @AKWAnalytics.
The past week in Bitcoinland has been entirely uneventful from both a news and price perspective. 350 $ was obviously the big number to watch as traders see-sawed price slightly above and below there. Now that it has been broken in earnest, we see further downside into the OTE.
While the longer term charts continue to hold up pretty well in the face of all of this selling pressure, the shorter term ones are saying that some additional work needs to be done on the downside. We concur, and believe that the 300 to 330 $ area will be the one to watch over the coming days. We think support holds, especially at 275 $, although the more time we spend churning from 260 to 400 $, the more solid the launchpad will be once the rally commences.
The main reason we feel this way has less to do with the actual technical indications on the charts, and more to do with the fact that these prices have not been adequately explored prior to now. Ponder this, it took the price of bitcoin only four weeks (from the 11/1/2014 breakout above 200 $ to the peak of 1163 $ on 11/28/13) to go from 200 $ to 1163 $, and during that timespan the majority of market transactions were on the bid side. Markets, especially young markets encountering true price discovery like BTC, need time and volatility in order to come to some sort of sustainable homeostasis.
So with that in mind, the longer the price can continue to explore these previously unexplored lower levels, the more sustainable the bottom will be and hence the more powerful the eventual breakout higher will be…
Cheers,
@AKWAnalytics
BTC/USD daily chart
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