Bitcoin market update, bear flag/pullback. Monday 9-21-2014

22 sept 2014

Bitcoin market price has been very choppy this weekend. There is no trend, no predictable price movement except for the fact that price tends to get stuck at 400USD/2450CNY. Looking at the 4 hour chart, we are inside of a consolidation/bear flag like pattern. If we do bounce from here, that the arrow is the likely target. Notice the last bounce touched the 50% retracement. So I would say that Fib retracement for this down movement is pretty good. In addition, this is the area that is the upperband of a rising channel. A bounce in a bear trend is risky to predict, there are many variations to all sorts of patterns so we will have to see how this plays out.

twitter.com/ibankbitcoins/status/513065932575367168

I am still long from Friday at 391, I set my limit at 430 overnight but it didn't hit (stamp did though). I will re-adjust my exits in the future. Like I said earlier, bounces are hard to predict. Therefore, risk needs to be tightly controlled and I have a stop of 12USD. The trade's risk to reward ratio is great and as a trader all you worry about is: [chance of successful trade]*[expected price target] / [chance of failure]*[stop price]

I do live trades and bitcoin market analysis daily. Follow me on my bitcoin trading blog and twitter: ibankbitcoins.com, twitter.com/ibankbitcoins