The bullish bias cited in my roundup yesterday extended to a small rally today. The break of the $365-370 resistance lead to more gains toward $380 with prices hitting a high of $384.65 two hours ago. We are currently trading just below the highs at $381 per coin. As usual, prices are quoted slightly higher on BitStamp at $385 and OKCoin at $388.
We are now very close to reversing the losses of the November 17th auction announcement. Bitcoin was quoted around $390 per coin on BTC-E right before the news about the auction hit the market. We seem to be repeating the pattern exhibited during the first bitcoin auction back in June, an initial sell-off followed by a market rally back to pre-auction prices. So far I can’t find any news stories/speculation about auction bids. We may need to see some confirmation articles that the submitted bids are higher then the current market price to generate a sustained move up.
The first resistance area to keep an eye on will be $400-$408. A move higher may extend the rise toward the important $454 swing high. A break above here may trigger a new bitcoin rally. On the downside, a move below the $339-$350 support will likely end the current upmove and may result in more losses toward $319 per coin.
The Superintendent of New York’s Department of Financial Services, Ben Lawsky, plans to leave his position next year for a job in the private sector. Lawsky was a proponent of more regulation for the bitcoin space. Under his leadership, the NYDFS proposed a set of new regulations specifically targeted at crytocurrency firms, later dubbed ”BitLicense”. The proposal was widely critiqued as too strict by bitcoin companies and cryptocurrency experts. The departure shouldn’t affect the implementation of the ”BitLicense”. In earlier interviews, Lawsky indicated that he wants to see the new rules in place in December of this year, or January 2015 at the latest.
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- See more at: http://www.forexnews.com/blog/2014/11/24/bitcoin-close-reversing-auction-losses/#sthash.vwIzHuVI.dpuf
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