I have been watching for the Bitcoin price to find support around $525, the low from December. It did slightly better, dipping to a low of $530 on Feb 21st and then proceeding to bounce back above $600 today. Technically speaking, this price action is very bullish as a ‘higher low’ was established, indicative of a uptrend that is still intact.

bitcoin

If you were kicking yourself when Bitcoin was above $1,000 and wishing you had a chance to buy lower, now is that chance. Sure, the price could drop again following some type of government action or other negative news, but I think we have most likely seen the low for this wave down.

Mt Gox Bounces Back, Speculators Cash In!

We have also seen the Bitcoin price on the troubled Mt Gox exchange nearly triple today. The exchange has suspended withdrawals due to technical issues, moved offices and is struggling to patch code and regain trust. The price dropped as low as $90, before nearly tripling to $270 today. Speculators are buying up Mt Gox BTC on the cheap in exchange for a fraction of the real BTC they used to be worth.

mtgox chart

The website https://www.bitcoinbuilder.com/  is a full-fledged “Gox” BTC to “Real” BTC exchange!

It works simply enough.. you deposit “Gox” BTC to the “Gox” address on your account (internal transfers of BTC within mtgox still work) and/or regular BTC to your “Real” BTC address. You can then place bids and asks (there’s a 2% fee on all trades) and then withdraw your “Real” or “Gox” BTC (only to a mtgox address will work for “Gox” BTC!).

So speculators that bought Gox BTC for $90 yesterday can now sell those BTC for $270 today! Not a bad return for 24 hours!