Support and Resistance Levels
Lets take a look at some potential levels of support and resistance. On the lower end, the first potential weak support stands at the most recent swing low at $362. Below this, the $343-$350 area should support falling prices. A breakdown below may quickly lead to a retest of the psychologically important figure at $300. Lower still, the October 5th swing low at $285 is another level to keep an eye on. The important levels on the downside end with $266. The $266 mark was bitcoins high during most of 2013 and will be a crucial milestone on the way down. A break below $266 may trigger a period of prolonged losses for BTC.
On the top end, the first resistance level can be found at $388. But keep in mind that this figure is still untested and thus likely weak resistance. Further up, the post-PayPal high near $450 ($446) should provide some resistance. If this figure is broken, bitcoin could quickly rally toward the $500 round figure.