Bitcoin market update, bear flag 10-3-2014
Market is forming a bear flag at the lows after yesterday's drop. How do you know that this is a flag? Read this bull flag post I wrote.
1. Prices overlaps between high and lows.
2. Volatility and volume drops .
Take a look on the hourly, we are at the lows. For the bulls, this could be a double bottom. Generally speaking, if it is a double bottom, then retesting the low the second time works best if it is "light"; a quick retest of lows and bounce.
I shorted at 380 yesterday with a stop of 380 at break even. I moved my stop from 393 to break even to make it a riskless trade. I personally have no idea which way price will go, I'll let the market decide. On one hand, we are in a strong downtrend. On the other, we are oversold and at support from early 2014.