This week, the price of bitcoin fell 18%, weighed down by negative sentiments on systemic risk – blocksize fork debate. Price fell off a cliff at $431 on January 15, 1am UTC + 3, in a series of dumps all the way down to a low $352 in 24 hours. December 3 was the last time price was here, and it looks set to continue as the blockchain fork debate intensifies. As I write this, price is at $380 on Bitstamp.
The break to the downside, forced price out of a trading range bound by $465 and $417. A huge red candle highlights this on the chart below.
$480 was a tough nut to crack, not just in October 2014, but for the most recent run up in November too. Seen above at (1), the rejected candle wick from $504 set a level to beat, which $465 last week failed to break on a second attempt.
As of writing this, the market sits at $350 level support at (2), retracing up to