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.
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)