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31 Dec 2014
Bitcoin might make a move downwards – Sunshine Profits
FXStreet (Barcelona) - Mike McAra of Sunshine Profits sees the sideways movement in Bitcoin indicating a probable bearish development, further anticipating the cryptocurrency to make a downward move.
Key Quotes
“The price of bitcoin opened the year at $770, according to the CoinDesk Price Index. By mid-December, it was trading in the mid-$300 range. This represents a drop of more than 50% from the start of the year.”
“However, it's worth noting that bitcoin is still trading comfortably above its price for much of last year. Indeed, it is changing hands for more than three times the amount it was trading at during the highs of April 2013, before its historic bull run.”
“Over the past 12 months, the price has been buffeted by a diverse array of factors, ranging from adoption by payments giant PayPal and technology goliath Microsoft to the massive sell-order from the 'BearWhale' and rumoured clampdowns by the Chinese authorities.”
“On the long-term BTC-e chart, the price is at one possible trend line and still above $300. Yesterday, we commented, the current picture is becoming more bearish by the day. It is not bearish enough to go short just yet, in our opinion. To suggest hypothetical short position we would have to see a slip below $300 and an uptick in volume.”
“Even though Bitcoin hasn’t really gone down on BTC-e today (it’s been relatively flat as of the moment of writing), this might actually be a bearish development. The volume has been relatively weak so it doesn’t seem that the next big move has already started. But the currency hit a low of $307 earlier today (only slightly above the Sunday low). This might be an indication of more downward pressure in the market.”
Key Quotes
“The price of bitcoin opened the year at $770, according to the CoinDesk Price Index. By mid-December, it was trading in the mid-$300 range. This represents a drop of more than 50% from the start of the year.”
“However, it's worth noting that bitcoin is still trading comfortably above its price for much of last year. Indeed, it is changing hands for more than three times the amount it was trading at during the highs of April 2013, before its historic bull run.”
“Over the past 12 months, the price has been buffeted by a diverse array of factors, ranging from adoption by payments giant PayPal and technology goliath Microsoft to the massive sell-order from the 'BearWhale' and rumoured clampdowns by the Chinese authorities.”
“On the long-term BTC-e chart, the price is at one possible trend line and still above $300. Yesterday, we commented, the current picture is becoming more bearish by the day. It is not bearish enough to go short just yet, in our opinion. To suggest hypothetical short position we would have to see a slip below $300 and an uptick in volume.”
“Even though Bitcoin hasn’t really gone down on BTC-e today (it’s been relatively flat as of the moment of writing), this might actually be a bearish development. The volume has been relatively weak so it doesn’t seem that the next big move has already started. But the currency hit a low of $307 earlier today (only slightly above the Sunday low). This might be an indication of more downward pressure in the market.”