Bitcoin Trading – BTC/USD Technical Analysis, Jan 18: Price Trends Lower after Approaching $230

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC/USD) has gradually trended lower this weekend as the market takes a breather from some of the most volatile trading since the August sell-off.

BTC had climbed as high as $227 72 hours ago, bouncing 40% from a new 14-month low of $162.68 on BTC-e. Since then, however, the rally has lost steam and the price has gravitated back toward the $190-200 range--an indication that a critical bottom has not been reached and a large-scale rally is not yet in the works.

Even during the relatively calm trading this weekend, the after-effects of last week's price shock are still being felt. Price swings are still on the scale of 10% or more within a few hours. Two hours ago, the price spiked by 13% to $213 on renewed volume, but the peak is still lower than the previous one during the 72-hour period.

Even in the current downtrend, short sellers should be aware of the ever-present risk of a sudden jump in prices and the accompanying "squeeze" which is likely to occur.

The recent drop has sent the 50-day moving average (MA) to nearly $300. BTC has traded below this indicator since falling to nearly $350 in early December. Should BTC recover to the upper $200s during the coming weeks, it may actually cross paths with the MA and make for some interesting technically-inspired moves.