Initially i thought about a break down of the 2$ big support, but BTC/USD after a huge selling climax bar reacted to 2.47$, i now have to reassess my view giving 2.8$ as next target. Usually when a big downside bar develops its starting point become resistance and in this case the resistance is the 2.8$-3$ zone.

Only with a  genuine upside breakout of the Ross Hook at  the 3.8$ level the overall bearish scenario will change in favour of a bullish one. I’ll check if the BTC/USD will form again a 1-2-3 formation and possibly a new Ross Hook  for a lower entry point  (compared to the old one located at ~3.8$) where to go long on the market.

 

On October 18, 2011 i wrote “…I can speculate to project a new bottom and i’ve a new support at 1.50$ to be reached by the end of november….”, well i think that BTC/USD is on track to that target , i think that the 2$ bottom will not hold and bitcoin will soon test the 1.5$-1.7$ zone.

Why? BTC/USD  failed to pass through the Ross Hook at 3.8$ and resumed the downtrend. It is true that the weekly moving average is slowing and flattening but this process will require a couple of weeks to stabilize and eventually reverse to the upside, in the meantime the selling pressure will probably bring the bitcoin under 2$.