$280 was broken and in short order the price plunged to a low of $246 on Bitfinex. The bulls had no strength to arrest the decline at any previous resistance levels. The price now needs to reset a lower level, most likely below $240. Expect choppy trading in the coming days as traders’ bearings are reset.
To capitalise on the return of volatility, go long realised volatility using BVOLH15.
In the News
UK government to regulate Bitcoin (Wired)
Intel making possible foray into Bitcoin with new hire (CoinDesk)
More details on Coinapult hack (CoinTelegraph)
Volatility reared it’s head and Bitcoin tumbled to a low of $269 on Bitfinex. $300 seems but a distant memory. The BIT euphoria has faded, and additional fuel is needed to restart the rally. $270-$280 range bound trading looks likely.
Use XBU24H to play the daily range. Expect $270 and $280 to be formidable resistance levels for the next few trading days.
In the News
Evolution shuts it’s doors taking thousands of Bitcoin from users (Qntra)
George Osborne to unveil Bitcoin regulations in next budget (IB Times)
Coinapult’s hot wallet hacked (Twitter)