Bitcoin Outlook: Finally, A Breakout
Ben Myers | Jul 27, 2014 04:44AM ET
In a move which many investors had been waiting for; bitcoin left the narrow range it had traded in for most of July. Bitcoin (BTC-eUSD) finally broke below the important pivot support level of $609 at the end of last week on back of very high volume and news of renowned Bitcoin investor Barry Silbert resigning from the post of CEO of SecondMarket. BTC/USD plummeted nearly 4% in the day, down to $577, before seeing bottom feeders and bargain hunters snapped up the nicely priced digital currency. The large swing in price proved that the smallest news would trigger large movement with the narrow range it had formed hinting towards a bearish price action.
On the hourly charts for BTC/USD continued to trade narrowly with $621 as resistance on the upside and $611 as support on the downside. However, support was broken and once the important pivot level was taken out, the selling quickly intensified. BTC/USD hit an intraday low of $577,butfound investor supportsub $600. The next level of resistance on hourly charts is $609 whereas support is at $577.
In other major news,the auction of domain, Bitcoins.com associated with the collapsed Mt. Gox, CEO Mark Karpeles, hit aroadblock after its partner CoinLab moved to halt the process. The U.S. District Court has also imposed a restraining order for a period of 14 days, instructing Karpeles to retain and keep account for all its assets. Meanwhile, Heritage Auctions, which was entrusted with the auction, has cancelled all the outstanding bids and is not accepting further bids. CoinLabhad filed a lawsuit against Mt. Gox in May 2013 over breach of contract, butKarpeles responded that the auction was in accordance with the bankruptcy court and that he is investigatingall options.
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