BTC/USD Breaks Descending Channel, Price Action Weak
Christopher Lemieux | Oct 20, 2014 11:24AM ET
Bitcoin traded through the descending channel, which was completed on the selling purge through $280. Although the spike created large positive volume, price action outside the channel remains weak. This is likely to to a "buy on the dip, sell on the rip."
Price action is thought to remain between a larger sideways zone between support of $357.21 and resistance $414.64. There are smaller levels within, but due the thinly traded market are not see as too significant.
Price action could be rejected off of the descending trend line, pushing prices back into the channel and, ultimately, to the larger support zone. A break higher, and a close above the 50-day EMA, would signal a move higher to $438.16.
As always, BTC/USD is neutral with no underlying bias. Targets are simply based on technicals.
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