Critical code failure and Mt Gox continued wind down could be the reasons.
There is a lot of chatter today about how a critical code failure in Bitcoin's code that could have been exploited to print more bitcoins than the 21 million, was discovered and fixed last week. Nevertheless, it has developers wondering if such a severe bug could be added to the code again? It also does not help the case for regulatory approval of bitcoin (as an ETF) or may lead to more regulatory oversight overall.
In other news, there was an article on Bloomberg how the Mt. Gox liquidation continues (see article here).
The news has helped to push the price lower. Bitcoin on Coinbase is trading down about $200 (-3.1%) at $6419. The low reached $6366. The high was at $6630.
Technically, looking at the daily chart above, the price is moving away from the 100 day MA at $6746 after toying with moving back above that MA line over the weekend. Staying below is more bearish. On the daily, the lows from September at $6116 and $$6106 are targets. The other swing lows are also eyed with the June bottom at $5777 being the lowest, of the lows (and a key level to break for the bears).
Drilling to the hourly chart below, the price yesterday moved below the 100 hour MA (blue line in the chart below) and then tested that MA line. Staying below, was an invitation to sellers and the price cracked the 200 hour MA (green line) at $6512.19 today. That MA is now a close risk level for shorts. Stay below keeps the bias to the downside.
The price is stalling a bit, but if the price should continue it's bearish ways, the lows from September will be the next key targets at $6116 and $6106.
Bears have taken more control today. Stay below the 200 hour MA is eyed to keep the sellers firmly in control.
