Bitcoin is still trying to find a bottom and that could be a long way off.

Here is the current chart setup:

Bitcoin/U.S. dollar chartCREDIT: ADVFN

You might wonder why these levels crop up like this, and there are a few alternate or perhaps contributing reasons.

• In the past these were natural equilibrium points where the market felt comfortable that the price was right. This level is likely to be ‘right’ on the way down too.
• People bought in to the instrument at this price, got hooked on the never ending rise and rode the price back down and this is their ‘get out without a loss’ level. It happens in reverse where losing investors hold till they ‘get their money back’ and then sell.
• People look to these levels as support and it’s a self-fulfilling prophesy

It could just be a random fluke but so far it’s paid/panned out.