Bitcoin Trading- BTC/USD Technical Analysis, Nov 17: BTC recoups some gains, flirting with $400

Bitcoin (BTC/USD) has recouped some of last week’s gains after a turbulent weekend that saw it retrace 57%. BTC is currently trading at $381 on BTC-e, down 5% from earlier highs of $406.

Volume continues to come in above normal, averaging over 500 BTC an hour.

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In bouncing back, BTC successfully kept its head above the 50-day moving average (MA). Prior to last week’s rally, BTC had not crossed back above this mark since late July.

It is unlikely that BTC will resume its rally to new highs in the immediate term. It is possible that a bottoming process is unfolding, in which case new highs will take several weeks to materialize. Should BTC encounter tough resistance at current levels, it may signal a mid-term return back to the low-mid $300’s.

Prices on BTC-e are about $6.50 (1.6%) lower relative to its peers.