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Bitcoin is trading lower today and pushing on the swing low at $580. One coin is currently going for $579.10 on BTC-E, compared to $584 on BitStamp. As we can see on the chart below, the $580 level is an important swing low point. If we manage to decisively break lower, BTC/USD may fall back to the 50% Fib retracement near $550. A move below the $545-$550 support area will mean an end to the current upswing. To the upside, we can find resistance levels at the round $600 figure followed by the $611 H&S neckline. A clearing of these levels will likely lead to a retest of the $667 swing high.
The past 7 days have been very slow with BTC/USD oscillating between $580 and $600. The market may be waiting for the results of the bitcoin auction on June 27th. The announcement of the news on June 13th triggered a sharp selloff in the virtual currency. But, like we mentioned yesterday, bitcoiners at FairLay.com are betting on $600 to $650 per coin, not far from the current market price. This means that the nightmare scenario where the coins are bought up cheap then dumped on public bitcoin exchanges will not materialize. On the other hand, if the auction goes well, we may see a move higher in the fledgling cryptocurrency.
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June 24, 2014 at 12:21AM
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