As
we talked about in the previously blog posting on April 17, Bitcoin has
established an interim bottom and is on its way to a test of its
psychologically important 200-day moving average. In the weeks since this post was written, the
Bitcoin price has silently rallied some 125 basis points to a recent high of
581.50 and is just under its 200-day MA.
The
key to Bitcoin’s latest turnaround has been the much-needed lack of media
scrutiny the virtual currency needed to build a base and eliminate investor
fear from the crash earlier this year.
For much of 2014, barely a day went by without some major news outlet
publishing a Bitcoin story and bringing unneeded attention to the platform’s
woes. Now that the media have grown
bored with Bitcoin and have moved on to juicier stories, the recovery process
can continue.
Let’s
continue to watch for resistance around the 200-day MA intersection at about
the 640-650 area (see above chart). This
would be the most logical pullback point for Bitcoin’s latest rally.
