BTC’s Lengthy Slide Takes a Pause

Bitcoin prices made a partial recovery after enduring their lengthiest slide since late December. Since hitting a 1-week high of

Bitcoin prices made a partial recovery after enduring their lengthiest slide since late December. Since hitting a 1-week high of $1023 on MtGox, the cryptocurrency had been in steady decline for close to 48 hours. After hitting a low of $880 on Monday, it recovered partially back to the relative safety of the low-mid $900 levels early Tuesday. BTC has spent the majority of 2014 trading in this range.

Although not as sharp or dramatic as other sell-offs observed last week or mid-December, its length reflects the growing negative sentiment about its future in the face of unrelenting opposition from Chinese authorities.

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Selling accelerated at higher volumes during daylight trading hours in China, at one point losing close to 5% in an hour. However, prices quickly recovered back above $900 as traders gravitated toward a wait-and-see approach.

Encouraging to BTC believers is the solid support level BTC has established around the $870-$880 level thus far in 2014. Each time BTC has approached this level it has quickly repelled it.

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(Chart source: bitcoinwisdom.com)

 

 

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