Yesterday there was the first serious profit taking by investors of this strong advance in price started in late September. In these cases it is very important that the average VWAP stop the fall of prices and in fact it worked perfectly despite the large volumes that occured at Bitstamp , about 50000 bitcoins .
At this point it is very important to stay above 270 dollars and possibly to react from here up to the second statistical deviation line of the VWAP located at 410 dollars,it would be a good top for November. It takes a lot of strength to go up further and it is very likely that we can drop during the next week down to $ 200, which i consider a very strong support and very important not to violate it.
For now I am waiting for further developments before taking a decision for my open trade , in the case of a break of $ 200 i will be practically forced to close the position to avoid to violate a fundamental rule of trading : do not to allow a profit to turn into a loss; it is very easy to fall in this mistake in a volatile market like this where winning trades can quickly turn into losses.
See you at the next update, and good trading .
Bitcoin Trading Ideas, Analysis 
Hey Enky, just to make sure I understand, you believe it could rebound to 410 but instead it is very likely it will continue its downtrend? Or do you think it will reach 410 first before doing that? Thanks.
Well you were right, it is retracing. How far of a retrace do you expect? Thanks again.
Hi, I have been looking into BTC recently and plan to invest soon. So what you are saying is that if the VWAP doesn’t hold, then we can expect a price drop to around $200 and that would be a good time to buy in?
Many thanks
Hi,
Firstly, thank you for your insightful blog. I have learnt a lot. I am a first time trader so please bear with me
Secondly, I have read somewhere that this seems like a bubble :
From the charts, it does seems like it. What are your thoughts? Do you think it is? or are there some things we should look out for before determining whether this is?
Hi. When you were talking about second statistical deviation line located at 410 dollars, did you mean bitstamp or mtgox? Thank you.
Hey Enky, stamp is about to hit 400. Think it will fall after hitting 420?