Bitcoin Roars Back After Sharp Drop

Bitcoin has shot back up to last week’s highs following a sharp drop-off Friday when it briefly touched $900 on

Bitcoin has shot back up to last week’s highs following a sharp drop-off Friday when it briefly touched $900 on MtGox. That level had matched its lowest in 4 days, and it spent the better part of 24 hours residing in the $910-930 neighborhood.

It subsequently shot back up to its pre-drop plateau of $950 experienced toward the end of last week. BTC then added to gains, once again challenging the elusive $975 resistance point but failing to crack it. It has now been trading in close proximity to this resistance level for several hours, matching last week’s prolonged periods of sustained strength but not showing any encouraging signs of trajectory for further advance. It is nearly 3 weeks since BTC has traded above its prevailing resistance level.

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Aside for the roughly one hour of trading when BTC shot back up to its current resistance level of $975, volume is slightly lower than normal, averaging about 300 BTC per hour, although lower volumes are starting to become the new norm in an environment of more stable prices and fewer market moving developments.

The strong show of recovery comes even when Bitcoin struggles to make inroads to the broader financial community, with J.P. Morgan’s Jamie Dimon writing off the currency as “a terrible store of value” on Thursday.

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