Bitcoin Trading – BTC/USD Technical Analysis, Jan 7: BTC Bounces Back above $280

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) had its first big bounce this year, climbing as high as $293 on BTC-e. Currently trading at $283, it is still down by over 10% for the year.

Volume has tapered from that seen during the sell-off earlier this week, now averaging 300 BTC/hour. BTC has done a relatively good job of retracing its losses, getting back nearly 50%. This is in contrast to other recent drops where prices saw little or no retracement at all.

The recent theft of $5 million worth of bitcoins from Bitstamp seems not to have unnerved traders into driving prices lower.

Still, having crashed through its previous levels of support, the current upswing may only be a temporary bounce and further losses are possible. BTC would have to climb out of the $200s during the next 1-2 weeks in order to technically convince traders that a long-awaited bottoming process is in the making.

The recent slump has sent bitcoin's market cap below $4 billion for the first time since early October as 14-month price lows have offset the increase in supply.

Prices on BTC-e are about $3 (1.1%) below those on its peers, an average offset.