Bitcoin Trading- BTC/USD Technical Analysis, Oct 19: $390 putting up stiff resistance

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) is having a tough time climbing back over the $390 mark on BTC-e, suggesting a possible bias to the downside in near-term trading.

BTC is currently trading at $384 on BTC-e. During the past 4 days, it has consolidated tightly about the $370 mark as the market seeks clues as to the next big move. BTC had roared back to over $400 following a horrific sell-off seeing it set new 2014 lows below $300.

With the 200-day moving average (MA) still slow to keep up with recent losses and holding fairly steady near $505, BTC is trading at 23% discount.

A look at the long-term chart shows that for the mid-term, BTC may have indeed run out of momentum to the upside. The pattern of successively lower peaks and lows remains intact with no critical point of reversal, and one notes the absence of any resistance between current levels and $200.

As markets have calmed down from the sell-off two weeks ago and relative equilibrium has been restored, the old Bitstamp/BTC-e spreads have returned. BTC-e is trading at a $7 (1.8%) discount relative to Bitstamp and several peers.