Bitcoin Extends Move Lower, $304 Hit
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After breaking past $319 yesterday, bitcoin extended the move lower to $312. The downtrend continued today with more losses to $304.05. After the lows prices rallied on BTC-E, spiking to a high of $319.45 four hours ago. But when the other bitcoin exchanges didn’t follow the move and remained flat, price fell back down. We are currently quoted at $313.07 on BTC-E, $312 on OKCoin and $315 on BitStamp.
Yesterday’s break of $319 was more or less expected after BTC/USD fell back down to $320. In our article yesterday we said: ”another retest of $319 would likely lead to a break lower.” On the downside, we find support near the $300 round figure. This is followed by the October 5th swing low at $285. Lower still, the $266 mark is another important support level to keep an eye on.
On the upside, a move above $335 should be a cause for worry to the bears. Bitcoin’s downtrend may end if prices manage to stay above $335 for an extended period. Higher up, we find potential resistance at $350, followed by $360 and the November 25th swing high at $389. A breakout beyond $390 could spark a new rally in BTC prices.
There have been no major bitcoin related news in the past 24 hours. Contrary to the news induced price crashes in H1, the latter half of the year has been characterized by slow and steady losses that can’t be pinned on a single event. The major themes in H2 have been increased scrutiny by regulators, especially in the US, along with selling pressure by bitcoin auctions. The spike in merchant adoption this year didn’t translate into higher consumer interest. With all the headwinds, it’s not surprising that BTC prices are trading over 70 percent off from their all-time high at $1090.
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