Bitcoin Trading – BTC/USD Technical Analysis, Jan 28: Price Testing $240

Bitcoin (BTC/USD) has fallen below $250, now testing its next support point of $240, which has been held for over 72 hours. It is currently trading at $248 on BTC-e.

The $240 mark has provided some stability and served as the platform for BTC's sharp rise to over $300. That rally, which was possibly motivated by Coinbase's launch of its bitcoin Exchange , was short-lived and prices dove to $250 nearly immediately after the launch.

The $240 mark has been tested repeatedly during the past 24 hours. Its breach would effectively destabilize the flattening necessary to show that the spike to above $300 was really the first leg of a larger rally. Instead, it may mark the completion of a head-and-shoulders pattern signalling BTC's return back to the low $200s.

The recent fall has sent BTC back to well below its 50-day moving average (MA). It had traded above this point for less than 24 hours after not having surpassed it since early December. The MA, now approaching $280, is at its lowest level since during BTC's super rally to over $1,000 in November 2013.

Prices on BTC-e are $5.50 (2.2%) below those on its peers, still slightly above the average offset.