Yesterday we wrote about the low volatility after Mt. Gox’s accounts were seized. The following graph from that article illustrates how we haven’t seen volatility this low on Mt. Gox since December of 2012. Looking back to that December low, there was a clear consolidation phase before the major run-up. Notably, the broader consolidation at that time lasted several months. The same pattern occurred in mid-March 2013 around $45, with a tempered ramp before a consolidation, followed by an upward inflection in prices. Markets frequently see periods of low volatility and consolidation around a price level before making large moves …
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What are hedge funds? Hedge funds are privately managed investment funds. Their primary goal is to gain outsized financial returns for its investors and are involved in virtually every market. Most investment vehicles like Mutual Funds and Exchange Traded Funds (ETFs) are publicly traded, must disclose their positions regularly, and undergo significant financial scrutiny. Because hedge funds are privately held they are not affected by these constraints. Frequently these funds are only looking for investments in the $10′s to $100′s of millions or more because of their limited time, and the large amount of funds they need to manage. While the bitcoin market …
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Apr 11, 2013
Posted
Businesses, News
Tagged Bitcoin, charts, Exante, Financial Times, Gatis Eglitis, hedge fund, investment, market cap, trading
Comments 2
9 days after reaching an an all-time high of $100, bitcoin doubles this record and breaks $200. With a market cap of $2.1B it is quickly establishing itself in the world of currencies. According to the world bank bitcoin is now larger in value that 42 countries, most recently passing Tajikistan and Montenegro. …
Read More →We hit our price target less than 24 hours after the breakout from $144. The ascending triangle continuously proves to be one of the most reliable patterns in bitcoin. This pattern frequently occurs as traders notice strong resistance at a price level and sell in hopes of re-adding the position at any pull-backs. As people become less confident in these pull-backs the dips become increasingly shallow. This is usually a continuation pattern meaning that the market will continue the trend it was in when the pattern started. When we finally broke through the resistance at $144, people that had been selling their position …
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Apr 8, 2013
Posted
News, Trading
Tagged analysis, Bitcoin, charts, price, technical analysis, trading
Comments 1
After a relatively quiet few days, BTC/USD charts indicate that bitcoin is positioned for a massive move. Although the direction is not 100% clear, there is a definitely a bias to the up-side. The upper red line on the chart indicates resistance at a constat level, while the lower lower shows support at increasingly higher lows. This pattern is typical of increasing upward pressure, and a breakout seems imminent as the lines are about to cross. It would not be surprising to see a move comparable to the size of the triangle, or approximately 30 points from our current position. Update: 24 Hours …
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