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Another 24 hours have passed and bitcoin is back where we left it yesterday. We are currently quoted at $243.05, just 50-60 cents below yesterday’s price. The daily range was a tiny $3.53 dollars, with a high at $244.53 and a low at $241 flat. For the past 8 days now BTC/USD has traded in a tight range between $240 and $250 dollars per coin (on BTC-E).
Prices have traded in a similar albeit slightly wider range on OKCoin. Here the high stands at $251.02 while the low is at $237.92. A clear break below $238 dollars may end the rally on OKCoin. For BTC-E, this level is at $240 dollars per coin. Curiously enough, the $240 mark (BTC-E) is the half-way point for this year’s range. As we noted in our yesterday article, prices have oscillated around the $240 dollars mark all year, which is the mid point between the yearly high at $318 and the yearly low at $162.
To restart the rally and regain some of the lost momentum, the bulls will need to break the previous peak at $259 on BTC-E and $263 on OKCoin. More resistance levels can be found at $270 and $300 on BTC-E, for OKCoin $270 and $305. This is a former triple top and a breakout above it could extend the gains.
On the lower end, below the crucial $238/$240 level we have some support at $230 dollars. Below here another weak support can be found at the $220 swing low for OKCoin ($222.23 BTC-E). But the major test for the bears will be the double bottom formation at $210 dollars per coin (BTC-E) and
Originally appeared at: http://www.forexnews.com/blog/2015/06/26/bitcoin-break-below-240-may-end-rally/