Bitcoin Bounces at Double Bottom After Crash

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Bitcoin bounced near the lows marked by a previous double bottom formation. In the aftermath of yesterday’s crash on OKCoin prices stabilized somewhat but only after they hit $214.49, surprisingly close to the double bottom at $214 dollars per coin. Last night BTC-E only traded down to $220 but today, not to be undone, the exchange tested its own double bottom at $210. In another leg down, a low of $211.05 was reached just hours ago, just 19 cents above the $210.86 formation low. We have since bounced back somewhat with BTC/USD quoting $223.90 right now.

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On OKCoin we also had another bout of selling tonight but prices never got as low as they did yesterday. The low today stands at $221.33, above the $214.49 mark hit yesterday. We are currently trading at $229 on this exchange. Chinese exchanges continue to hold onto the post-PBOC intervention gains and have even expanded the premium from $6 to $8 dollars. While most USD sites are selling bitcoins for $229, on CNY exchanges prices go for around 1,488 Yuan, or $238 dollars.

Due to the composition of the OKCoin’s Futures Index, this in turn is inflating futures prices. The nearest August 21st contract is trading at $236.47 ($7 dollar premium over spot) while the further away September 25th contract is at $239.76, pricing in a premium of $10 dollars.

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On the news front, yesterday’s BTC panic crash seems to have been exacerbated by a series of margin calls on BitFinex, the largest bitcoin exchange by trading volume. Prices dipped to a low of $162

Originally appeared at: http://www.forexnews.com/blog/2015/08/20/bitcoin-bounces-at-double-bottom-after-crash/