Bitcoin retraced some of the losses accrued during the previous two days. After opening at $215.14 on BTC-E, prices rallied slowly till they reached a high of $222.31. We have since eased up somewhat with bitcoin currently quoted at $219 per coin. Here’s an updated 1 Hour chart of BTC/USD.
Taking into account the fact that bitcoin fell 7.7 percent in less then 24 hours hours, the retracement isn’t surprising. The limited gains today don’t change the overall picture however. The cryptocurrency is still within an established downtrend. To end the losses, BTC/USD will need to climb much higher and take out the $258 swing high. On the lower end, while the latest interim low at $213.98 may act as weak support, the real battle will likely take place little lower. The key support remains to be the area between the $200 round figure and $208 per coin. The losses for bitcoin could intensify if we clear this support area and head lower.
While a lack of market moving news, let’s turn our attention to the Bitcoin Foundation. The chief scientist of the Bitcoin Foundation Gavin Andresen gave an interview to the IB Times UK at the margins of the DevCore Roundtable in London. Andresen, a founding Foundation member and a bitcoin developer, placed most of the blame for the loss of reputation at the feet of Charlie Shrem and Mark Karpeles. Shrem recently got convicted for money laundering while Karpeles was the CEO of the now failed MtGox exchange. The once top bitcoin exchange, MtGox shut its doors in February 2014 under mysterious circumstances.
”It was very damaging. Membership revenue went down and there was a lot of trust we lost. That combined with the huge decline in the bitcoin price made it impossible for the foundation to continue doing all the things it was doing at the beginning of last year.”
To read the entire interview head to the IBTimes. While the Bitcoin Foundation doesn’t have a direct effect on the decentralized BTC network, it pays the developers working on the software underpinning the network. The Foundation has come under a fresh attack recently by new member Olivier Janssens. In a forum post titled ”The Truth About the Bitcoin Foundation” Janssens claimed, among other things, that the organization ”has almost no money left”. This claim was later rebutted by the Foundation.
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