Bitcoin has entered into panic sell mode as news comes out of Venezuela that the virtual currency is trading at a very significant discount. It seems to be a desperate attempt to liquidate positions or it could be due to disruption of the SurBitcoin operations by authorities. The short-term outlook is on balance bullish with support forming at $610.01. However, the longer-term view is that this is just the start of a downward trend, with resistance around $655 – $670 for the next few days.
Venezuelan news outlet Diario Bitcoin reported that Bitcoin trading on the Venezuelan exchange SurBitcoin reached lows of $407 while other exchanges elsewhere averaged $635. SurBitcoin announced earlier that they were having difficulties integrating with one of the main domestic banks through which the majority of transactions are made. A combination recent events in Venezuela, including some negative press, price panic and the need to sell bitcoin in order to cover living expenses such as food or housing, are likely to have caused the dramatic drop in price. The price on the SurBitcoin exchange has since recovered but still