Happy New Year and another sweep down in the BTC price below 290. Followers of our recommendations should now have covered their tentative short position from the 342 level and be flat again.
This latest move down lacks conviction and backs up our central thesis that we are seeing long term bottoming behaviour in the market with this down move being a re-test of the lows reached in October (275 intra-day); rather than a new impulse move lower.
Stay flat for now until market sentiment becomes clearer. Our recommendation is to place a buy order (1/3 position) on a break back above 340. We don’t recommend placing a buy order at this level or below the current market level as falling markets have an uncomfortable habit of falling further and faster than people anticipate, better to buy after support has been established.
Good Luck for 2015