NEW YORK (TheStreet) -- The bitcoin downward trendline connecting the highs on April 16, April 25, and May 1 has been broken.
Looking from a long-term perspective, the latest move up is just a blip in a downward spiral. The medium-term trend down, which started after bitcoin prices hit a high of $1090.01 on Nov. 30, is still intact. To consider the latest bullish move as anything more than a "dead cat bounce," a sustained break above the important psychological level of $500 would be needed. To the downside, a break of the swing low at $342.79 would invalidate the latest rally.
The China crackdown continues
The pressure by the People's Bank of China aimed at cutting off Chinese bitcoin exchanges from the country's financial system continues unabated. The latest move came from the Bank of China.