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Currencies BitCoin Bitcoin Range Continues for a Second Day

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Bitcoin is continuing to trade range-bound. After yesterday’s $10 dollars, the range today shrunk to a mere $7 dollars. The daily low stands at $340.03 and the high at $347.50. We are currently quoted just of the highs at $341.83 on BTC-E. As usual prices are somewhat higher on OKCoin at $345 and BitStamp at $350. The chart below shows yesterday’s range marked in yellow, today’s range is colored purple.

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As we’ve seen recently, congested periods like these often end in breakouts. The main points to watch for are $360 on the upside and $332 on the downside. A move below $332 may lead to more losses toward the $319 swing low. This is followed by the $300 round figure. A breakout above $360 may accelerate the gains to $388. Above here, possible resistance levels include $400 and the important swing high at $454.

In an email exchange with CryptoCoinsNews, BTC payment processor BitPay provided some numbers on merchants holding bitcoins. According to the company, out of a total of 44,000 merchants, 22,000 convert all the coins received to cash. A smaller 18,000 hold on to some coins and only 4,400 merchants keep all bitcoins received as payment. BitPay didn’t provide a breakdown on the percentage of total volume converted to fiat.

This makes it hard to judge exactly how much of the BTC received is instantly converted and thus has a downward pressure on the price. But I would suspect that most of the merchants holding on to bitcoins are the smaller shops. The only figure we have for a major retailer is that Overstock keeps 10% of all bitcoins received. Since Overstock is run by Patrick Byrne, a big supporter of cryptocurrencies, the percentage for other major firms is probably much smaller. The larger companies like Dell or DISH likely convert all of their BTC to USD.

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