Will Bitcoin Drop Below $400?

The bitcoin price has stumbled to $469.15, losing almost half a percentage point over the past 24 hours. If losses are extended pat $455, we could see a move to the low $400 levels materialize. However, the market is expected to trade sideways today, as recently the price has been trading in a narrow range, bouncing in-between the Bollinger Bands.
The Bangladesh central bank has recently banned Bitcoin and users face up to 12 years in jail. The central bank has said that the use of crypto-currencies is unlawful under anti-money laundering laws and this decision has arisen from local media reports highlighting the use of Bitcoin by Bangladeshi citizens. This stands in contrast to other central bank reactions. While most have expressed concerns about the potential risks of using Bitcoin, only 4 countries have banned it outright.
Almost 50% of wealth Chinese residents are planning to leave China and move abroad over the next five years. This trend is bullish for Bitcoin, as it will enable them to move their money at virtually no cost. Over the long-term, buying pressures could increase in China as those who want to emigrate could use the crypto-currency to keep their wealth hidden from authorities, as well as protecting it from high currency exchange fees.

This post was published at Investing on Sep 16, 2014.

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