Bitcoin market update 9-5-2014; breakout of flag
Market rallied and broke out from the rectangle. The measured move, or 100% of the price range of the flag/penant is the target drawn in the rectangle. Its pretty accurate huh!
Short term is up, no doubt about it. The long 1 hr green bar speaks for itself. Longer term market conditions says the price is in a vacuum right now, In other words, price should move to a more stable area. In this case, 3100 (500usd) or 2900(475usd) have been past consolidation areas.
On the daily chart, it looks like we are just chopping around with large volatility. Bitcoin prices will trade within the the triangle until a big breakout happens. That is the opportunity to trade again. I am still hold short because the trend is down. However, unlike my past conviction about this downtrend, I am now doubtful of how the market will react. If market makes new high above recent high, I will cover.
Also, I am looking for other technical analyst experts to fill the ranks on my blog, PM me if you are interested to share your ideas and get free views.