Bitcoin Reverses Losses on Microsoft Announcement
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Bitcoin volatility continues to increase. Today’s daily range is already at $23.49 dollars and we’re only 10 hours into the session. After opening the day at $340, the initial fall lower took prices to $332.51. From here BTC/USD reversed all the losses and then some as news spread that Microsoft will start to accept BTC payments. We are currently quoted at $353.98 on BTC-E. This compares to $360 on OKCoin and $363 on BitStamp.
Today’s rally muddies the waters a bit. While the trend continues to be on the short side, the momentum has now shifted upward. To resume the move lower, BTC/USD will need to take out today’s daily low at $332. Below here, the first important support can be found at $319 per coin, followed by the $300 round figure. On the top end, a move above $360 should be a cause for worry to the bears. But to start a new uptrend, bitcoin will need to break the $388 swing high.
As we mentioned above, today’s sharp rally was due to the news that Microsoft will start to accept BTC payments. The foray is currently limited to the US and Canada plus only digital goods can be purchased at this time. Customers can now use bitcoin to add money to their accounts, which can then be used to buy digital content from Microsoft’s Windows, Windows Phone and Xbox platforms.
”You can only use bitcoin to add money to your Microsoft account and then purchase digital goods at select Microsoft online stores. You can’t use bitcoin to purchase Microsoft products and services directly at this time.”
Microsoft currently has a market cap of $391 billion. In 2014, its annual revenue was $86.8 billion. The company will use BitPay as their payment processor.
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