Bitcoin Technical Analysis (BTC/USD): Stabilizing, 200-day moving average straddled

BTC/USD has gone through a period of stabilization this weekend after some relatively turbulent trading a week earlier. The truth is the bulk of the damage transpired within a 12-hour period on July 24-25, with the pair losing roughly 6%, after which the pace of decline diminished considerably.

BTC/USD then recouped losses heading into the weekend. After challenging 1-month lows at $555, the pair shot back up to $598 before finding equilibrium in the $570's. The pair is currently trading at $575 on BTC-e on lower than average volume of 75-100 BTC per hour.

The pair has thus adhered to its $550 support level, which hasn't been broken since prior to the May rally.

Also encouraging is its temporary return back above its 200-day moving average (MA), which has now declined to $585. The gap between its traded price and MA had widened last week, but the recent price stabilization has brought the two within striking distance. The resumption of selling during the past 12h, however, pushed BTC/USD to about 1.5% below this key level.