Hello from Montana! I hope you are all having a great weekend. Damn, I have been slacking, it has been ten days since my last update. The price of bitcoin is up about 4 to 5 thousand since then, bitcoin is starting to remind me of the Energizer bunny! Ever since this recovery started on July 21st I have been pretty cautious, recognizing that there was a possibility that it was just a bear market bounce. I have to say though that I am starting to believe that this could be the real thing, a new bull market. There I said it! Now bitcoin will dump tomorrow!
Bitcoin Daily Chart
Looking at the daily chart you can see that bitcoin has just broken through a high volume node and in doing so has pushed back up into the distribution zone. I consider this to be a very bullish development, although I am still keeping open the possibility that this recovery could still fail.
Ideally, what I would like to see now is for bitcoin to remain up in the distribution zone. Either by continuing to moving higher or consolidating here for a while, building a strong base from which it can start another leg higher. So far, during this recovery bitcoin has experienced smaller pullbacks of around $5000 and lasting 4 to 5 days which you can see on the daily time frame. But if you look at the weekly time frame there really isn't a noticeable pullback, so at some point, I would expect a pullback of a longer duration. When it comes I would hope that it just creates a higher low before resuming the uptrend. I am really enjoying this resurgence from bitcoin and I am not ready for it to end!