Originally published in the BullBear Analytics Weekly Report released on 11/14/2014. Partial excerpt only. Written by @AKWAnalytics.
Just as a flurry of noted tech journalists have come out predicting the demise of bitcoin (for the millionth time), BTC decides to make them look silly by rallying 120 $ in five days! This is why they are working as journalists, and not killing it in the markets. While it is too early to call a definitive bottom, we do think the bulls will rally into year end.
This is not to say that prices can’t have violent moves to the downside(see the past two days) as enthusiastic latecomers are inevitable when FOMO hits, but we think these spikes will end up being good buying opportunities as insiders anticipate good news going into 2015.
Additionally, the volume on the move from 320 $ to the 454 $ local high was the most in many months. In fact, if you add up global BTC exchange volume, more bitcoins changed hands yesterday than in the history of the nascent digital currency! On that note, China was certainly leading the way higher in price and volume as OKCoin, BTCChina, and Huobi all showed over 20 $ premiums over the western exchanges all day on Tuesday. Those saying this move was driven by western investors are misguided, in our opinion.
So with all that in mind, we would remain neutral on the market for the time being as the consolidation from the parabolic move up begins. This could take some time to play out, but we think the longer it takes (given support holds), the higher price can go.
Cheers,
@AKWAnalytics
BTC/USD daily chart
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