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Bitcoin breaks down

Published 01/18/2017, 08:37 AM
Updated 01/18/2017, 10:21 AM
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Bitcoin has had a volatile start to the year after gaining 120% in 2016, making it the world's top performing currency for a second straight year. It raced to a gain of more than 20% in the opening days of 2017 before rumblings that China was going to crackdown on trading began to surface.

Then, nearly a week later, China announced it had begun investigating bitcoin exchanges in Beijing and Shanghai on suspicion of market manipulation, money laundering, unauthorized financing, and other issues. When the dust settled bitcoin had lost 35% of its value in a handful of days. The price bottomed out after finding support in the $750/$800 area and has managed to fight its way back to the current resistance level.

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