Since the failure of Mt.Gox, the worlds biggest Bitcoin exchange, the product “virtual currency” has not been seeing any huge gains. Other exchanges like BTCE and BITFINEX also met a huge drop in prices around the 90 US dollars level. Prices remained stable only on the american Bitcoin exchange BITSTAMP, where they dropped only to the 380 US dollars level. Afterwards there was a short recovery followed by a new low around the 350 USD level. Our analysis will continue, using the BITSTAMP exchange as our main chart source. The huge slump was a signal, that Bitcoin has run its course and its uptrend has finished. Since then we have been bearish on the virtual currency.
On the chart below is given our short-term scenario. Investors should prepare for a phony recovery, but this does not mean, that it is time for long positions yet. As you can see, we expect the downtrend to continue in wave ((Y)).
Our last chart is showing the completed big picture impulse on a logarithmic scale and the three-wave correction, which should develop in the near future before Bitcoin starts a new uptrend or completely disappears, maybe replaced by some other virtual currency.
Charts by: www.tradingview.com