So that’s it – another week’s worth of trading in the bitcoin price pretty much come to an end. We’ve got the morning European session ahead of us, and beyond that, the US session this afternoon, and then the weekend. Overall, it’s been a pretty good week. Action was nice and volatile heading into the start (and through until around yesterday midday) before settling into something of a range during the Thursday US evening session and in to the Asian session last night.
We managed to start above the 600 flat mark, and psychologically, this is pretty important. Why? Because 600 will likely serve as key psychological support for a while, and if we break it, there are no doubt plenty of speculative short positions waiting to activate on the break. As these positions active they will trigger a sort of cascade effect – one sell after another as the ask controls the bid – and this will push price down further. Exactly how much depends on the aggressiveness of the unseen positions, but based on experience we’d definitely put it in the $10 range, give or take a brief corrective upswing.
So, with all that said, what are we looking at