This remained the case after our alert was published and today Bitcoin has depreciated some (this is written before 11:00 a.m. ET). The depreciation today makes the short-term outlook more bearish but it is not an indication of a very strong move to the downside. The way the action is shaping up, it seems that today might be an indication of the recent move up being just a jump to the upside. If so, then the current short-term outlook remains bearish.

On the long-term BTC-e chart, we see that yesterday’s action looks very much like a bounce down from a possible declining trend line. Today would also fit well in this pattern as we’ve seen some depreciation. Our yesterday’s comments are still up to date:

Yesterday’s action brought Bitcoin close to the stop-loss level at $239 but the currency didn’t touch it, which suggests that not much actually changed based on yesterday’s action alone.

Unless we see a move above this level, we will still view the short-term outlook as largely unchanged. Our take right now is that Bitcoin might resume the declines in the near future. A move above $240 is still possible but our best bet would be on Bitcoin moving back down.

This has so far been the case but we wouldn’t get too optimistic just now. The short-term outlook is bearish but yesterday’s action alone is still not enough to proclaim that the next big move has begun.

One way or another, the outlook remains unchanged and it is bearish, in line with the recent trend. Consequently, we still think that short hypothetical positions might become even more profitable than they already are. If we see a move back down on higher volume, the situation would become even more bearish.