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.
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.
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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.