Bitcoin Trading – BTC/USD Technical Analysis, Jan 19: Price Facing Resistance at $220

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's (BTC/USD) bounce from 14-month lows has hit some stiff resistance just below $220, raising the specter of the low $200s becoming the new near-term norm and of further declines in the works.

BTC is currently trading at $208 on BTC-e. After jumping to near $220 yesterday, it has failed to gain much ground. It has converged tightly toward current price levels during the past 24 hours, in stark contrast with the lingering Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term we had become accustomed to during the 72 hours prior.

BTC is continuing to set lower peaks, suggesting some instability in its residing above the $200 mark. The direction of the next big move, however, remains highly uncertain. A break past the $220 and $230 marks could have significant upside implications as short sellers race to cover positions.

Prior to yesterday's jump, BTC also showed some support around the low $190s, the de facto floor upon the return of calmer trading conditions.

Adding uncertainty to BTC's next move is the fact that it has barely retraced 50% of its losses from above $300. Downturns from the previous August through December have witnessed retracements typically higher than 70%. As is usually the case, the flattening profile makes for a difficult survey. Traders have little to lose by waiting on the sidelines.

Prices on BTC-e are about $3 (1.4%) off from those on its peers, a return to its normal offset.