April 17, 2013 (Coinalpha.com) - After finding support at $50 yesterday, the bitcoin exchange rate against the USD has established a range between $50 and $100 which should be closely monitored for a potential breakout in upcoming trading sessions.
Bitcoin maintained above yesterday's low at $50.01, finding support at $63.30 in today's trading, before jumping to an intraday high of $98.77, after volume yesterday exceeded last week's high with a new record spike above 550K.
BTC Daily Chart Provided by Bitcoincharts.com
Traders should keep an eye on the top of the range around $100. A break above this level could open the door to a move that would test some of the highs from last week in the area between $120 and $140.
Should such breakout materialize, another important level to watch will be $160- the approximate 50% retracement of the recent drop from $266 to $50.
If the bitcoin exchange rate fails to produce a bullish breakout above $100 in upcoming sessions, we could witness more weakness to come for the virtual currency which could head back to test the bottom of the existing range at $50.
Currently, bitcoin is in a corrective pattern following the massive sell-off. Bitcoin's price behavior in the days ahead at the levels mentioned above will tell the story as far as the future trend direction for the virtual currency.