Good afternoon all, time is bitcoin so let's jump right in. In the previous post 2 days ago we commented on the recent BTC sell off and where it found support and bounced on the chart- that level was at $2285, and we saw a violent bear market rally back up to over $2700 on Bitfinix- see chart from 2 days ago below. 
We said that we thought that $2132 was in play using our measured move analysis off of BTC's 2013 spike higher and compared it to this most recent move up. We know there is usually a premium to purchase BTC on the coinbase network, and this spread seems to widen when BTC sells off quickly in the several exchanges that I watch- sometimes coinbase just outright crashes and they don't let anyone buy or sell BTC when the price is tanking- thats a whole separate topic that we should discuss sometime. So 2 days ago we put a $2250 price target on BTC on coinbase and suggested that be the first bullet you fire if you're new to BTC. Fast forward 2 days and we're rolling over again- see chart from about 3:45PST below
As you can see we have just violated that previous trendline that was serving as major support, I believe there is a very good chance we will see $2132 on Coinbase and that we could even see those levels in the next 6-12 hours. The next level of major support doesn't come into play until you reach $1725 (see chart below)
This level ($1725) I think will be tested at some point in the next month, but I think its highly unlikely that we see it on this particular sell off. I think like the first sell off from 2 days ago, we will see a violent bounce back up to our decending trendline and that we are setting up for another bear market bounce (and yes using the highs of $3003 2 days ago, BTC is in a bear market).
As we said, we think $2132 on Bitfinix and $2250 on Coinbase represent a nice entry point for an initial BTC purchase, perhaps 10-15% of the total position desired. Long term we think BTC will come back into the 1400-1600 range, most likely in the next month, and we would be buying aggressively at this long term support line (see chart below)
In closing, look for an entry in the next 6-12 hours with an opportunity to sell that on a bear market bounce, but long term we think BTC still has plenty of downside in front of it. IF YOU DO INTEND TO TRADE DO NOT USE COINBASE, transfer funds to an exchange of your choosing after doing your due diligence, as the fees and spreads are for more manageable there.