Since rocketing to near 4-month highs at the beginning of the month, BTC/USD has gradually slid back to the low $600’s. Currently trading near $615 on BTC-e, it is steadily approaching what can be viewed as a key short-term support level around $600.
$600 served as its previous line of defense. BTC/USD ran out gas after once again peaking just above $650, which is now becoming a formidable line of resistance. After 2 weeks of steady decline, the pair reversed course heading into the weekend but barely peaked at $630.
The 2 week-period of successively lower peaks practically rules out any imminent rally back to $650, instead setting the stage for a key stretch of trading over the next 24-36 hours. This will determine if the pair can continue trading at this level or break through their support point. Should the latter materialize, $560 represents the final line of defence to hang on to the bulk of its gains from the May rally, which started in the mid-400’s.
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The good news: having consistently held its head well above $600 for the past two weeks, its 200-day moving average has also consolidated to around $600. BTC has resided above this mark during the entire period, doing so for its longest stretch since late March. Following its May rally, BTC managed to barely keep above its 200-day moving average for no more than 10 days.
During the past week, there has been little by way of major developments worthy of fundamentally influencing BTC value.