Bitcoin market update. ascending triangle 10/6/2014
Over the weekend, bitcoin market was under heavy selling pressure that we haven't seen since the last bubble. We are inside a big ascending channel on the hourly. Why do I not call this a bear flag, a continuation pattern? This is because the range and volume of the channel are big; the band is over 25 points! A churning of this size suggests that market cannot settle to a fair price at this time. USD exchange traders are trying to find fair value at 300 witnessed by the stamp wall. The CNY exchanges seems to prefer 2000CNY/325USD.
I am still holding on to my short at 380 from a few days ago. As a trend following trader, I try to hold on to the short for as long as possible until trend reverses. I believe a short bounce is coming, not sure when though. I will cover at 347 area if we get there. My initial downside target was at 275. However, I didn't get to exit the first time that happened in the middle of the night. I am confident that we will retest that area because it was the all time high of the previous bubble.