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Bitcoin In Deep Retracement After Bullish Surge

BTCUSD Daily Chart 11/15

(click to enlarge)

Volatility is in the air for virtual currency bitcoin (BTCUSD). It recently shot up from under 220 to above 500. Most of this rally was accomplished in late October to early November. After cracking 500, price continued to be volatile but retreated. This means a sharp retreat ensued, but we should note that the volume is declining. We should expect volatility to cycle back to a more quiet mode as the market tests the previous 2015 highs around 300. 

I would expect the market to start stalling between the 78.6% and 61.8% fibonacci retracement levels (between 263.15 and 314.20). Also note that a rising trendline resides in this area and will reinforce the possibility of support. At the moment, the 500 level has become key resistance, and we shall see if the previous resistance area around 300 will become support.