Bitcoin Dips, Establishes Short-Range Trend

After again failing to crack the now impenetrable 980 mark yesterday, BTC on MtGox slipped to a low of $935

After again failing to crack the now impenetrable 980 mark yesterday, BTC on MtGox slipped to a low of $935 before rebounding to $950.

Trading volume was even lighter than yesterday, averaging fewer than 100 BTC exchanged per hour.

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Today’s trading around the low 950’s marks a noticeable drop from typically higher levels between $960 and $970 maintained over the past 3 days.

However, more significant is the development of new short-range support level around $935 within the current trading range. BTC has tested this level on multiple instances over this period and recovered well each time. The mid-range resistance level of $975, however, continues to be a formidable obstacle both in the short and mid term patterns.

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Continued trading in this range under low volume conditions will likely continue so as long as the calm fundamental climate prevails. Traders are unmoved even by mixed signals from Google about its potential integration of Bitcoin, perhaps via Google Wallet.

This era of stability is the longest such period since October, when BTC was trading below $200 before exploding several-fold followed by aftershocks.

BTC- Jan 23 long

Though BTC looks poised to leverage its newest floor as platform to jump higher, this is unlikely to happen in the absence of good news from Chinese authorities or the people looking to work around them.

(Chart Source: Bitcoinwisdom.com)

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