Bitcoin Trading – BTC/USD Technical Analysis, Jan 7: BTC Bounces Back above $280

Bitcoin (BTC/USD) had its first big bounce this year, climbing as high as $293 on BTC-e. Currently trading at $283,

Bitcoin (BTC/USD) had its first big bounce this year, climbing as high as $293 on BTC-e. Currently trading at $283, it is still down by over 10% for the year.

Volume has tapered from that seen during the sell-off earlier this week, now averaging 300 BTC/hour. BTC has done a relatively good job of retracing its losses, getting back nearly 50%. This is in contrast to other recent drops where prices saw little or no retracement at all.

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The recent theft of $5 million worth of bitcoins from Bitstamp seems not to have unnerved traders into driving prices lower.

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Still, having crashed through its previous levels of support, the current upswing may only be a temporary bounce and further losses are possible. BTC would have to climb out of the $200s during the next 1-2 weeks in order to technically convince traders that a long-awaited bottoming process is in the making.

The recent slump has sent bitcoin’s market cap below $4 billion for the first time since early October as 14-month price lows have offset the increase in supply.

Prices on BTC-e are about $3 (1.1%) below those on its peers, an average offset.

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