Bitcoin market update, at support 9/24/2014
More market consolidation. On the hourly timeframe, we are bouncing between the two trendlines. The buying pressure is getting slightly higher at this juncture since we have made higher lows. However, the big downtrend suggests that this could be a bear flag. I've made a post about trading flags before if you are interested. In addition, we have retested this ascending trendline multiple times, 6 total.
I went short this morning at 403 for those who follow. I realized that the bounce might not come again since we already retested 425 area or 50% fib. I am not saying this with absolute certainty that price will fall, but here are some interesting observations. Short interest right now is close to all time high and price is at the lows. Clearly, people are comfortable shorting here. Short squeeze is a possibility that many boast on the forums. Last time market bounced pretty high was after a cascading margin call style sell-off, it was BFX followed by Bit-e. Was that a one time deal or history tends to repeat itself? I hope you all trade with caution since the tape can be so confusing to read during a consolidation period.
I am still looking for bloggers if you are interested in joining.