Bitcoin Breaks Support, $219 Hit

By Petar Kotevski on Apr 13, 2015 11:15:59 GMT

After a drawn-out battle lasting for three days, bitcoin finally cleared the support area around $230 per coin. The initial spike lower took BTC/USD from $231.90 to $221.52 in only 12 minutes. After this flash-crash we stabilized somewhat for the next two hours. But as the session was nearing its end, bitcoin took another dive lower, this time to a low of $219.51. We have since retraced some of the losses but BTC/USD remains close to the daily lows at $223.38 on BTC-E, $223.83 on OKCoin and $223 flat on BitStamp. Here’s a chart displaying the last few days of price action leading up to today’s decline.

So far things are transpiring according to our outlined scenario. In our roundup yesterday we said: ”The next 1-2 days will likely be crucial to determine if the next impulse move will be higher or lower. The hovering right above support and the lack of a major rally after the 3 rejections point to another leg down.”

In previous articles we also mentioned that, due to the closeness to the current support, the $225 level wouldn’t be able to stop the bears. So what can stop or at least slow down the downtrend? Notable support below here include the $208 swing low and the $200 round figure. The whole area from $200 to $208 should be treated as one large support. A clearing of this area and a move lower could open the door to the $192 swing low. However, a more established support level can be found at this year’s low at $162 per coin. To end the current downtrend, bitcoin will need to rally back above $260 per coin.

Via:http://www.forexnews.com/blog/2015/04/13/bitcoin-breaks-support-219-hit/

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