The
Bitcoin market remains subdued following last month’s crash low, which came on the
heels of the Mt. Gox debacle. Since then
the Bitcoin price has been consolidating above the late February low and is showing signs of wanting to move higher
in the near term.
Based
on the rules of our technical discipline, a 2-day higher close above the 15-day
moving average is needed to confirm an immediate-term bottom signal. Bitcoin did manage to close decisively above
the 15-day MA on March 3, but failed to follow through with a higher close. It has remained below the Mar. 3 pivotal
closing level ever since.
Accordingly,
a close above 677.69 (the Mar. 3 close) is needed to confirm an immediate-term
bottom and renewed “buy” signal for Bitcoin.
This would not only fulfill the requirements of our technical discipline
but would also establish a pattern of higher highs and higher lows, the
definition of a renewed upward trend. While
we’re waiting for this signal, it’s interesting to note that Bitcoin has shown
respect to the 15-day MA as a support/trend line in the last several days.
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