Bitcoin has been on a steady climb since May 19th. We passed 500 which was quite a hurdle in terms of emotion. We were able to sustain high volume and are creeping up to the 1000 mark. Just today we hit 600 so what will happen now? As a disclaimer the following will be pure speculation and your comments are more than welcome in regards to this. Lets take a look at the following BTC-E chart on Bitcoinwisdom:
The key to reading Bitcoin charts and the approach I am going to take to predicting the future market price is to look at patterns. Yes it seems obvious but we need to establish what exact pattern are we looking for and we need to use the right timeframe. You see the bigger the price swings the bigger the time frame that you want to use to read the chart. So in our case since the latest price increase matches similar 10-20$ jumpst which started happening on May 19 we will use that as our time frame to read the chart. Here is the same modified chart but with some extra lines to help you see the pattern:
As we can see the pattern Bitcoin is following right now is it stays stable for a short while (12-48 hours) and then does a quick jump of about $10-$20. While this is all speculation a clear pattern is visible, according to what has been happening since May 19th we should be seeing the Bitcoin price stabilize for the next 12-24 hours followed by a price increase of $10-$20. How can you take advantage of that knowledge? If the market keeps following this pattern our best option is to hold and wait for the uptrend to finish. If you are more of a risky player you can try waiting for the next price increase and try to sell right at the peak. So you would watch the market until you see a bright big candle like here, by the way this happened yesterday read about it HERE:
in which case you would try and create a sell order about $20 higher. If you time and price the order right you should be able to sell right at the peak. Then you can rebuy at a lower price before the next price jump and make a few extra $$$. Last time I tried it (yesterday) I sold most of my coins at $578, after watching the market for a couple hours and seeing Bitcoin go as high as $590 I decided to rebuy at $580, I did loose on the $10 increase but I am glad I re bought because now Bitcoin has passed $600.
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