Bitcoin Breaks $332 as Downtrend Resumes
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Bitcoin’s downtrend continued today as prices broke the $332 swing low. The move lower took BTC/USD to $324.60. Around mid-day we saw a small retracement to $328.74, likely caused by the Time announcement. Bitcoin is currently quoted at $325.80 on BTC-E. As usual prices are higher on OKCoin at $332 and BitStamp at $337.
The next line in the sand for BTC is the $319 swing low. A break below could lead to more losses toward the psychological round figure at $300 per coin. Below here, the $285 swing low and $266 may also act as support. On the top end, a move above $350 will likely mean an end to the current downtrend.
As we mentioned above, around mid-day BTC prices had a small recovery. Time Inc, a major magazine publisher, will accept bitcoins as payment for some of its magazines (Fortune, Health, This Old House and Travel + Leisure). The company will use Coinbase as its bitcoin payment processor. Brian Armstrong, CEO of Coinbase commented on the deal:
”For a major publisher like Time Inc. to embrace bitcoin sends an important message to both its readers and to the broader media community”
This year saw a massive increase in both the number and the scale of merchants accepting bitcoin payments. Five days ago, Microsoft, the world’s second biggest corporation by market cap, announced that it will accept BTC for digital content from Microsoft’s Windows, Windows Phone and Xbox platforms. But despite a large spike in merchants adoption, there has been no corresponding increase in consumer interest.
Overstock, the first major retailer to accept BTC payments, reported today that its 2014 sales will substantially miss earlier targets. The company expects to have $3 million in bitcoin sales this year, a far cry from Patrick Byrne’s estimates of $10 – $15 million. Judd Bagley, director of communications and general manager of Overstock’s Cryptocurrencies Group told Coindesk:
”While we’re still very happy with sales to customers paying with bitcoin, the numbers didn’t meet our initial expectations.”
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