I’ll be synthetic and almost telegraphic, the reasons that led me to believe in a possible reversal of the market are:
1) An rsi divergence was forming, a bullish divergence occurs when the underlying security makes a lower low and RSI forms a higher low and this happened shortly after (pointed out in the chart with dotted line)
2) Price was close to the important level of $650,  it bottomed out at $651.54 @bitstamp
3) 667$ was the first negative deviation line using the 4 hours chart

Normally i do not publish on this blog trades so dangerous, completely against the trend and with an high level of volatility, because I am aware that many of you who follow me do not have enough experience to be able to operate in such situations without making mistakes but this time i’ve done an exception. Possible target is the short term average at $780 that is providing resistance, once there i’ll decide what to do. Support level remains at $650.

After the initial flash crash down to $542 sellers failed to take control of this market that is currently holding just below VWAP computed using last 15 days of data; the bitcoin price reaction from the bottom has been slightly bullish (price is holding above midpoint level of $766 of the range $542-$990 that represent the first upswing from the $542 bottom) and i believe that we can consider the recent bottom an important one, at least in the short term although i’m not sure if there is enough fuel to move above VWAP at $885 and enter bullish territory.

All these considerations are for the immediate short term, for the long term i’m not completely sure about the direction of the next bitcoin move.

Possible weekly range for Bitstamp is $720-$970 and for BTCchina 4400-5900 CNY.