Running of the Bulls The resistance at 95 turned out to be exactly the catalyst we expected it to be. The Mt. Gox DDoS slowed volume and delayed the break-out, but as we noted yesterday via twitter while it was happening, there were still strong signs of bullish sentiment. Contrary to prior DDoS attacks, the market remained largely unfazed and used the opportunity to take a breather from the aggressive swings that have characterized the last few days. The 95 level quickly turned into support, further confirming the market was prepared for a breakout. Bitcoin looks to have put in a solid double …

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It’s been a rough few days to be bullish for bitcoin, but the technicals indicate the pain will be easing soon. The chart below is the BTC/USD exchange rate on Mt. Gox for the last week using 1 hour candles. As I write this article Bitcoin is just below $100. There are three characteristics of this chart that indicate the first bullish signal in a long time: a capitulation bottom, 2 closes over the 21hour EMA, and a crossover of the 7EMA and 21EMA.   1) Capitulation Bottom: Capitulation occurs when investors give up all hope, and just want to …

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