Bitcoin volatility jumped as prices rallied $50 dollars since our update last week. But the move up stopped abruptly at the $266 mark and prices retraced nearly all the gains in Sunday’s trading session. The same boom/bust pattern can be seen in other altcoins as they followed big brother, first up, then down.
Bitcoin Rally Stops at $266
The rally in BTC stopped at the $266 mark. After being ignored by prices during the last rally, this important level has reemerged in prominence this week. Right after hitting a high of $265 flat, bitcoin fell over 50 points to a low of $221.74 on Sunday. Why is $266 important?
The $266 mark was the swing high reached during the April 2013 rally. It then stayed as the highest high for BTC/USD from April to November of 2013. The second massive rally in November 2013 started after we had breakout above $266. It eventually led to prices of $1090 on November 30th 2013. The large down-move in January of this year happened after $266 gave way on January 13th. Bitcoin fell over almost $100 dollars in the next three days. And now we can add the most recent rejection of prices on February 15th to this mix. Here’s an updated longterm price chart.
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