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Bitcoin had another volatile session with little to show for it. The day was relatively uneventful with prices bouncing in a $6 dollar range between $282 and $288 dollars. But as soon as the new Asian session started, things got interesting. First we got a mini-crash to a low of $277.02 on BTC-E. Then this crash got quickly bought up and 1 hour later BTC/USD was trading back in the $284/$285 dollars area. We are currently quoted at $285.82, barely $1 dollar above the price noted during our yesterday roundup.
On OKCoin prices dipped to a low of $282.99 before rebounding. One coin is selling for $287.50 right now. Futures are holding onto some premium but the differential between the contracts is narrowing. The July 24th contract that expires next Friday is quoting $289.54, while the September 25th contract is trading at $294.78 dollars. This is a premium of only $7 dollars above the main exchange, a far cry from the $25-$50 dollar values seen just few days ago.
The declining premium is a result of the lost momentum higher. To restart it, bitcoin will need to rally above its 2015 high at $318 (BTC-E) and $321 (OKCoin). Above here some resistance can be found at the $334 swing high ($340 OKCoin). On the lower end, a break below the $270 dollars mark should be a cause for worry. But until BTC moves below the $260 swing low (BTC-E) and $263 (OKCoin), the rally will technically remain in place. Below this level we find important support at the $250 dollars handle. This was a major BTC resistance as well as the breakout point
Originally appeared at: http://www.forexnews.com/blog/2015/07/16/bitcoin-dips-2-percent-quickly-recovers/