Bitcoin Trading- BTC/USD Technical Analysis, Oct 14: BTC roars back to $400
BTC/USD's bounce has found legs, roaring back to the $400 mark on BTC-e. It has not traded above this psychologically significant level since September 23, when news of PayPal's partial acceptance of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term sent it as high as $450.
That pop was short lived. In a trajectory obviously indicating over-hyped news, the pair gravitated back to below $400 and then proceeded into one of its worst slumps this year. Falling as low as $285 on BTC-e- a new 2014 low- there was an uptick in talk of an all-out crash and of investors losing hope.
Since discovering some support around $325 last week, however, investors have piled back in. BTC added as much as 43% from its $285 trough, a lucrative but not-too-uncommon return during volatile rounds of crypto trading. It hit a high of $408 12h ago, and is now trading at $402.
The momentum of the 1-week rally reinforces theories that the big drop was catalyzed by early investors dumping their holdings in an uncontrolled and nonstrategic fashion, perhaps triggered by prices crossing a stop point. Cheap coins were then snapped up by investors, resetting equilibrium.
The question now becomes if the rally was nothing more than a bounce, retracing 75% of losses, which are soon to be resumed. Or if the dramatic drop- which unlike the flash crashes, dragged on for an extended period- in fact signifies a critical point of long-term reversal. BTC is still off by 60% year-to-date and remains 20% below its 200-day moving average, now down to $507.
If/when the price retraces back to below $400, a solid support range of $350-$370, held for an extended period, needs to be established in order for a grander recovery to take shape. If not, one bears in mind that there is little support between current levels and $200.
BTC/USD's bounce has found legs, roaring back to the $400 mark on BTC-e. It has not traded above this psychologically significant level since September 23, when news of PayPal's partial acceptance of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term sent it as high as $450.
That pop was short lived. In a trajectory obviously indicating over-hyped news, the pair gravitated back to below $400 and then proceeded into one of its worst slumps this year. Falling as low as $285 on BTC-e- a new 2014 low- there was an uptick in talk of an all-out crash and of investors losing hope.
Since discovering some support around $325 last week, however, investors have piled back in. BTC added as much as 43% from its $285 trough, a lucrative but not-too-uncommon return during volatile rounds of crypto trading. It hit a high of $408 12h ago, and is now trading at $402.
The momentum of the 1-week rally reinforces theories that the big drop was catalyzed by early investors dumping their holdings in an uncontrolled and nonstrategic fashion, perhaps triggered by prices crossing a stop point. Cheap coins were then snapped up by investors, resetting equilibrium.
The question now becomes if the rally was nothing more than a bounce, retracing 75% of losses, which are soon to be resumed. Or if the dramatic drop- which unlike the flash crashes, dragged on for an extended period- in fact signifies a critical point of long-term reversal. BTC is still off by 60% year-to-date and remains 20% below its 200-day moving average, now down to $507.
If/when the price retraces back to below $400, a solid support range of $350-$370, held for an extended period, needs to be established in order for a grander recovery to take shape. If not, one bears in mind that there is little support between current levels and $200.