Bitcoin Technical Analysis (BTC/USD): Prices Just Above $560 Support After Falling Below $600

Prices of bitcoin continue to fall today after breaking below the $600 barrier on Thursday.  Before Thursday’s move, prices had

Prices of bitcoin continue to fall today after breaking below the $600 barrier on Thursday.  Before Thursday’s move, prices had been in a tight range for July, trading mostly between $610 to $620.  Following their initial move lower, bitcoin found support at $585 but that level was broken today, with prices hitting a low of $562 on BTC-e.

At current levels, bitcoin is trading around prices where it initially saw support in mid-June (see chart).  Following bitcoin’s May surge from $420 to around $650, profit selling brought prices back around $560 in mid-June.  However, demand stepped up at those levels to propel prices back above $600.  As a result eyes are now back at the $560 level to see if it holds again and proves to be an area of demand.  A break below $560 may trigger further selling pressure as short-term buyers that bought the current dip may exit their positions.  Beyond $560, there isn’t much support until $500.  Beyond just a psychological barrier, $500 also represents the 38.2% retracement level from May’s lows to June’s highs.

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