Bitcoin Bounces From $192 Lows

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Bitcoin had a strong bounce from the $192.55 low set earlier in the session. We are currently quoted at $217 dollars on BTC-E, only $4 dollars below the yesterday’s daily open and $25 dollars higher compared to the lows. To keep things in perspective however, BTC/USD is still down by $93 dollars from the highs set just 44 days ago.

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On OKCoin we hit a low of $195.60 today before bouncing higher to a high of $224.60. One coin is selling for $219.56 on the OK USD exchange. The CNY website is quoting bitcoin at 1409 Yuan or $222.39. The rest of the Chinese Yuan exchanges are in the same bullpark. The sub-$3 dollars gap is within the historical bounds seen before the PBOC intervention. The usual premium on CNY sites compared to USD exchanges is from $0 – $3 dollars.

Futures on OKCoin are still holding onto a tiny premium over spot. The nearer August 28th contract is trading at $220.91, just $1.35 dollars above the main exchange. The far out September 25th contract is quoting $222.98, barely at a $2 dollars premium.

While the $25 dollars bounce from the lows is substantial, keep in mind that it comes from very oversold territory. Bitcoin was down by over $115 dollars from the highs and $57 dollars from the breakout point at $250 dollars. In percentage terms these falls amount to 37% and 22.8%. The decline from $250 is more important because it happened in only 7 days. Within trends large retracements are possible, especially after big losses/gains in a short period of time.

Today’s bounce may give the bulls some room to breathe.

Originally appeared at: http://www.forexnews.com/blog/2015/08/25/bitcoin-bounces-from-192-lows/