The weekly chart is currently showing the third attempt to break the old Panic Zone ceiling. I was a little wrong on the timing of the powder keg event that would propel buyers through the resistance that has been in place since January. I thought the Greek Tragedy would be the source and that this would take a long time to unfold. What I didn't anticipate was a much larger and faster trigger. China. The implosion of the China equities market and about to burst real estate bubble have huge implications to the flight of capital from those markets. Bitfinex is located in Hong Kong!
This rally is just getting underway. Look at MACD and RSI. The next resistance ceiling is $400. I expect some turbulence between here and $400. We need to see a new support layer form at $275. My guess is that there will be some large oscillations in what I'm going to call the launch zone, $275 to $400. Look for some tests of the $275 support in the next couple of months and perhaps an initial breakout attempt from the "Launch Zone".
My oscillators on the weekly have turned to a buy state. I think we are looking at 3 months of time bouncing around in the "Launch Zone". About 1/2 as long as we have stayed in the Panic Zone.
Like I said, I'm bullish above $275.
If you are looking to play the bounces, take a look at the 6 hour chart.
This rally is just getting underway. Look at MACD and RSI. The next resistance ceiling is $400. I expect some turbulence between here and $400. We need to see a new support layer form at $275. My guess is that there will be some large oscillations in what I'm going to call the launch zone, $275 to $400. Look for some tests of the $275 support in the next couple of months and perhaps an initial breakout attempt from the "Launch Zone".
My oscillators on the weekly have turned to a buy state. I think we are looking at 3 months of time bouncing around in the "Launch Zone". About 1/2 as long as we have stayed in the Panic Zone.
Like I said, I'm bullish above $275.
If you are looking to play the bounces, take a look at the 6 hour chart.
