Well that was a humbling episode. One of the best technical setups I’ve ever seen in 6 yrs of technical analysis was turned completely upside down. For a while, my ~553 entry shorts held well as we made a small double top. However, as China woke and lead the market, things suddenly accelerated to the upside.
This acceleration is key and is a very important change in market dynamics. As per the chart below, my previous ~550 short entry instead became a midpoint: The first half was the rally from the ~430 lows to ~550 which occurred at a certain “pace” or “slope of ascent” if you will. We now find ourselves in what appears to be an accelerating 2nd half of the rally which should carry us to the ~675 level fairly quickly. Many disappointed bears will continue to short this market thinking the rally is overdone… only to be disappointed more. Don’t be one of them!! I’ve taken up longs and will not consider shorts until we reach my ~675 target. Expect a pause/pullback in the ~625 area. This Gox issue may wash over quicker than I had thought it would and Bitcoin can finally get back to rallying to it’s rightful long-term place.
This acceleration is key and is a very important change in market dynamics. As per the chart below, my previous ~550 short entry instead became a midpoint: The first half was the rally from the ~430 lows to ~550 which occurred at a certain “pace” or “slope of ascent” if you will. We now find ourselves in what appears to be an accelerating 2nd half of the rally which should carry us to the ~675 level fairly quickly. Many disappointed bears will continue to short this market thinking the rally is overdone… only to be disappointed more. Don’t be one of them!! I’ve taken up longs and will not consider shorts until we reach my ~675 target. Expect a pause/pullback in the ~625 area. This Gox issue may wash over quicker than I had thought it would and Bitcoin can finally get back to rallying to it’s rightful long-term place.