Which Way Will Bitcoin Move Next?

NEW YORK (TheStreet) -- It has been an uneventful week for bitcoin, everyone's favorite cryptocurrency.

The rally that started last week fizzled out after reaching an interim high of $445.95. From here, bitcoin against the U.S. dollar fell to a low of $426.75. After the lows reached earlier on Sunday, BTC has been moving aimlessly for the last three days. It is currently quoted at $436.73 (BTC-E). A move above $450 or below $412 will be needed in order for prices to break out of this range.

Looking at the daily chart, we seem to be at another potential turning point. The trend line that connects November's all-time high of $1,090 to the recent April swing high of $544.99 is under attack. A break of $450, or better yet $500, will be needed to confirm the upward momentum. However, keep in mind that we're still in a sustained downward trend and prices could just as easily reserve and break below the $412 low, leading to more losses.

Washington Acts on Bitcoin

It has been a busy week for Washington bureaucrats. First, the Federal Election Commission ruled that bitcoin donations can be used to fund political campaigns. However, due to the anonymity of the virtual currency, the FEC placed a limit of $100 worth of BTC on donations. Still, the move is a small win for bitcoin and will allow its supporters to fund bitcoin-friendly politicians with BTC.

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