Bitcoin Dips Lower as Swings Continue

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Bitcoin closed lower in today’s trading session. On BTC-E prices opened at $237.09, then rallied a bit to $239 flat. The second half of the day saw heavy losses however, with BTC falling almost $10 dollars to $229.72. We eventually closed the day at $231.19, about $5.81 below the opening price.

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The chart above shows the price action for the past two weeks. Notice how after a sizable move higher of $25 dollars we have retraced almost $16 dollars. This indecisive, zig-zag behavior is typical for ranging markets. Until bitcoin breaks one of the crucial support or resistance levels, expect more of the same.

Here are some of the levels we’re watching. On the top end, weak resistance can be found at $239 dollars on BTC-E. But the important threshold will be the $250 figure. This was former resistance turned to support and now back to resistance. A clean break above this level should start a new BTC rally. Higher up, more resistance can be found at $269 (BTC-E) and $272 (OKCoin).

Meanwhile on the lower end, we find some support at $231 (BTC-E) and $235 (OKCoin). This was the breakout point for the mini-rally to $245 dollars. The $231 figure also acted as support on BTC-E just few days ago on September 10th. The bounce at this level led to another mini-move higher to $239. But in the grand scheme of things these moves are nothing to write home about, so while the $231/$235 level qualifies as support, it’s not a very strong one.

Below here we find the former double bottom at $210 (BTC-E) and $214 (OKCoin). This is a slightly stronger support

Originally appeared at: http://www.forexnews.com/blog/2015/09/12/bitcoin-dips-lower-as-swings-continue/