Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bitcoin Market Tensions Building Up

Currencies / Bitcoin Mar 19, 2014 - 09:57 AM GMT

By: Mike_McAra

Currencies

To the point: we don’t support any positions in the market just now.

Mt. Gox has enabled users to log into their accounts and check their wallet balance. Before users get excited – this doesn’t mean that they will be able to access their money. For all we know, these balances are nothing more than numbers on a computer screen, or if you will in a database. Mt. Gox reminds of that using different wording:


Important announcement to all users confirming their account

This balance confirmation service is provided on this site only for the convenience of all users.

Please be aware that confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure and note that the balance amounts shown on this site should also not be considered an acknowledgment by MtGox Co., Ltd. of the amount of any rehabilitation claims of users.

Rehabilitation claims under a civil rehabilitation procedure become confirmed from a filing which is followed by an investigation procedure. The method for filing claims will be published on this site as soon as we will be in situation to announce it.

Again, Mt. Gox doesn’t even acknowledge that these are the amounts owed by them to customers. It is unclear whether the actual numbers are up-to-date or just figures from the past. The announcement doesn’t really change anything as far as the situation of Mt. Gox’s customers is concerned and we wouldn’t pay too much attention to it unless it turns out that the amounts shown in account balances are backed up with bitcoins.

Let’s move on to the charts.

The move down has picked up in the last two days on BitStamp. Yesterday, Bitcoin lost 2.2%, a second day of increasing volume. The outlook was not changed since the currency didn’t break below $600 (dashed red line on the chart). Overall, yesterday there was more action than during the preceding days but not enough to support short positions.

Today the move down has deepened. At the moment of writing (before 10:30 a.m. EDT), Bitcoin is down 1.7% and the volume has already topped what we saw yesterday. We have a move down on increasing volume, which looks like a classic shorting opportunity. Is this enough to go short at this time? We don’t thinks so. The price briefly went under $600 but has retraced since and is currently around $610. This means that the move down has lost some of its steam, at least for now and at this moment, we don’t support going short.

It is conceivable that this is only a temporary break and Bitcoin will slip under $600 in the hours to come. If such a move indeed takes place and the volume picks up, there might be a shorting opportunity. We’re not quite there just yet.

The picture on BTC-e is consistent with what was seen for BitStamp. We have a move down on increasing volume. If anything, the move today has so far been stronger than yesterday, even taking into account the small rebound from $600 (dashed red line on the chart) seen earlier today.

On the other hand, Bitcoin hasn’t gone as low on BTC-e as it has on BitStamp. For the time being today’s low on the former exchange is $598.00 compared with $591.13 on the latter. The most important part seems to be the fact that the currency has gone back above $600.

Right now, the situation is tense and we might see further moves down quite soon. At this moment, however, the possibility that such action will be stopped above $600 is significant enough for us not to support opening short positions just yet.

Summing up, in our opinion no positions should be kept in the market. This may change in the following hours if Bitcoin breaks below $600 on strong volume.

Trading position (short-term, our opinion): no positions. A break below $600 on strong volume would be a bearish short-term sign now.

Regards,

Mike McAra
Bitcoin Trading Strategist
Bitcoin Trading Alerts at SunshineProfits.com

Disclaimer

All essays, research and information found above represent analyses and opinions of Mike McAra and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mike McAra and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. McAra is not a Registered Securities Advisor. By reading Mike McAra’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Mike McAra, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in