Bitcoin Trading- BTC/USD Technical Analysis, Sept 17: BTC breaks support, falls sharply

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 (BTC) has fallen sharply after breaking through its support level of $460 on BTC-e 24h ago.

The support level had long served as a stronghold of stability. It had not been broken, despite multiple attempts, since the August sell-off. Even during that time, BTC barely spend 24h below the threshold. Price instability prevailed, culminating in the flash crash followed by recovery to above $500.

Prior to that, BTC had not traded below $460 since before the May rally.

It is currently trading at $449 and earlier hit $442.50, a 4-month low. BTC had already shown bearish signals 48h ago while exhibiting abnormally flat behavior and failing to climb above $470 on numerous attempts, without exception.

24h ago, BTC made its first move: it broke through the $460 support level. Beyond this point, there is little support to be found in the $420-450 range, last visited for a lengthy stretch immediate prior to the May rally. Hence, after a brief retracement all the way back to $460, BTC sunk by as much as 4%.

BTC has thus been thrown off-pace from its 200-day moving average (MA) of $540, which had started to flatten during the past week. Now 17% off, the pattern bears resemblance with recent periods of decline. The MA offset is the biggest since during the August instability.

The spread between BTC-e and Bitstamp is back to within $7 (1.6%), the going rate during the past 6 months.