Morning Bitcoin market update, 8/18/2014.
Another sell-off overnight, the Asian markets are leading this move down. My btc target from a few days ago was 450 usd/btc and it was hit today.
There is a lot of support around the 460-425 level indicated by the consolidation area from april-may 2014. Bears are still in control and have momentum on their side. I recommend not trying to catch a bounce because they are often short lived just like 8/15. I would rather see if the market forms a bottom and reverses at this juncture. I have not covered my shorts 1, 2 yet, but soon.
I also want to clear up some misconception about shorting and short squeezes. There seem to be a notion that short interests are driving down the prices and they will eventually pay when price bounce. This is clearly not the case. Don't believe me for it. Take a look at bfxdata short interest. We see that short interests are covering during big declines like today and bitfinex flash crash day. This actually suggests the opposite, short interests are providing liquidity during a sharp decline. As of this post, many have covered already. The chance of a "short squeeze" is not likely.