Bitcoin Trading–BTC/USD Technical Analysis, Dec 16: BTC Drops Sharply to 6-Week Low

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC/USD) has dropped sharply to $329 on BTC-e, its lowest point in six weeks.

It has broken through its short-term support point of $339, which had been repeatedly tested during the previous 72 hours. As assessed, any meaningful breach would send BTC to fresh lows.

During the past 48 hours, there has been a noticeable uptick in volume, and with it, a departure from the highly flat behavior and a signal for resumption of larger moves in the market. BTC jumped as high as $348 on volume exceeding 1000 BTC/hour, only to return to what had been a tight range of stability in the low $340's. With the downward momentum already in place, BTC dropped by 3% during the past 8 hours. Volume averaged 250 BTC/hour during the drop, which while average these days, was a sharp increase from that observed over the weekend.

The recent slump coincides with declines in global equity and commodity markets, in tandem with a strengthening US dollar, though such moves aren't always necessarily correlated.

Prices on BTC-e are about $5.50 (1.7%) off from those on its peers, slightly above average.