Today, we’ve seen depreciation resume (this is written past 9:45 a.m. EDT) on potentially increased volume (the day is far from being over, though). This all looks like a possible step on the way down. The depreciation itself is not extremely strong, 1.1% at the moment of writing but the fact that we might see a third close below $450 makes things that bit more bearish for the short term.
If you recall what we wrote yesterday in our Bitcoin Trading Alert:
Bitcoin has been trading between $400 and $450 for more than two weeks now. It seems as though this period of stabilization might be a prelude to significant moves in Bitcoin. Based on the current short-term outlook, it seems that the next big move will be to the downside.
We’ve seen some of this depreciation today. In fact, our hypothetical position for BitStamp, first suggested in our alert on May 8 when Bitcoin was at $445, is already profitable with Bitcoin currently at $437.78.
On BTC-e Bitcoin barely edged lower yesterday and the trading volume was lower than on the day before. This looked like a possible breather in a decline. The currency was still between $400 and $450 and the short-term outlook was bearish.