Krutika Adani
Between the late night of Saturday and the early morning of Sunday, Bitcoin fell below $55k but quickly recovered within a few hours.
The surge was accompanied by increased trading volume, which suggests that a large number of market participants have sold BTC.
Some experts doubt that Mt. Gox could be responsible for much of the selling as a large part of the decline from $73k was during the Asian trading hours.
Despite the widespread selling, 70% of the market participants have held onto their Bitcoins, showing that their investment horizon might be long.
$55k is a strong support. Any move above the $58k resistance could take the price above $62k. On the downside, a slide below $50k could lead to a fall to $52k.