Tuesday, June 9, 2015

Bitcoin BitStamp Daily Chart

A follower wanted a quick read on bitcoin which is not in the news as much as it was last year. The NYSE announced plans to launch a Bitcoin Index, the NYXBT, a few weeks ago which adds legitimacy to the fledgling digital currency. The sideways symmetrical triangle has developed during 2015 and price is at and through the apex. A major decision for bitcoin will occur at anytime and will dramatically affect the future for the cyber currency. The vertical side of the triangle indicates that the upcoming move may be about 150 handles.

Bitcoin lost the 200-day MA last August and languishes below ever since. Price should revert back above the 200-day MA at some point forward making bitcoin bulls happy. The slope of the 200-day MA, however, is downward which is a bearish indication. An upside breakout from the triangle pattern would place bitcoin back into the sideways 325-400 range that dominated the October-December 2014 period. Bitcoin news coverage will likely increase in the weeks ahead as price makes the important bounce or die decision from current levels. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note: The chart is courtesy of Bitcoin Charts a very useful site for bitcoin followers and is annotated by Keystone.

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