Bitcoin… oh Bitcoin, what are you up to now?

November 5, 2014 3:10 pm Published by Leave your thoughts

Bitcoin price trend

 

When you look at the overall chart you can clearly see that the price of Bitcoin has gradually declined since June 2013. However, the lowest point of around $280 was reached in October and it hasn’t been touched any more. It seems to me that there is a great potential for trend reversal especially because the last three days have closed higher than the previous.

 

Last three days bitcoin price risingWe have to wait a little longer to confirm this, but things are looking rather good in my opinion. Remember 10 days ago where I didn’t recommend opening a position at all, but if you really had to, I suggested to go long? (Read more about it here: http://ynef.net/bitcoin-price-acting-as-expected-is-it-time-to-open-a-long-position/). It’s never a good idea to trade against the trend, but going long should make sense right now.

 

Right now the $360 area seems like a solid resistance level. If we break this level there is great potential for further upward movement. In long term it’s already a good idea to buy a few Bitcoins and just sit on them for a while. They’re bound to go higher eventually.

 

 

Bitcoin price MACD indicatorWhen you look at the MACD indicator you can see that when the lowest point was hit in the first half of October the two lines crossed higher than previous in the second half of the same month. There’s a big chance for the crossing to take place again any time now which should drive the price even higher. Also notice how MACD keeps making higher lows!

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This post was written by ynef