Bitcoin Stuck Between Double Top and Double Bottom
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Bitcoin bounced off the important $330 figure again. Earlier today, BTC/USD rallied from $315 per coin to a high of $332.03 before retracing somewhat. We are currently quoted at $325 on BTC-E, $329 on BitStamp and $330 on OKCoin. The chart below shows the price action of the last few days, including the recent double top formation.
The bounce of $332 is not surprising. As we mentioned in our article yesterday, the latest bitcoin move lower was sparked after a break of $332. If BTC/USD can climb&stay above $332 per coin, this should invalidate the downtrend. But to generate a sustainable rally, bitcoin will likely need to take out $360. With the forming of the double top near $330, prices are now wedged with double top/bottom formations on both the up and the down side. On the lower end, watch out for the double bottom near $300. A bitcoin break lower could lead to renewed losses toward $285 and $266.
Former Bitcoin Foundation member Charlie Shrem got sentenced to 2 years in prison. Shrem pleaded guilty to to charges of aiding and abetting an unlicensed money transmitting business. According to his own admission, he helped to send money on behalf of an operator of an illegal bitcoin exchange called BTCKing. Charges of money laundering were dropped and Shrem will have to forfeit close to $1 million in profits. A remorseful Charlie told the judge that:
”The bitcoin community, they’re scared and there is no money laundering going on any more. They’re terrified. Bitcoin is my baby, it’s my whole world and my whole life, it’s what I was put on this earth to do. I need to be out there. If your honor grants me that, I can be out there in the world, making sure that people don’t do the same stupid things that I did.”
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