Bitcoin Down $3 Dollars as Range Continues

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Bitcoin closed the day down by $3 dollars. We opened at $281.52 and slowly fell to a daily low of $276.45 near the end of the session. Today’s losses negate the small gains made in the previous three days and continue the range-bound trading. For the past five days, BTC/USD has been stuck in a tight trading range between $275 and $283 dollars per coin. We are currently quoted near the lows of this range at $277.55 on BTC-E.

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On OKCoin one bitcoin is selling for $281.20 at the moment. Rival exchanges Coinbase and BitStamp are quoting $281.10 and $280.17 respectively. Futures on OKCoin continue to trade at a premium, with bigger premiums priced in the longer dated contracts. The nearer August 7th contract is quoting $281.66, the September 14th contract is at $283.67 while the far-out September 25th is trading at $292.49.

The key area remains the $270 handle. A decisive break below here ($269 OKCoin and $265 BTC-E) would end the uptrend. A clean break could also lead to some follow-through to the support levels at $250 and $240 dollars per coin. Further down, some support can be found at $230 as well. Out of these three, the round $250 figure is the  important support. This was the breakout point for the current bitcoin rally. Resistance turns to support and this former level may support prices, at least temporarily. On the flip side, a decisive break below $250 should lead to more losses.

On the upper end, we would need to see a breakout above $318 dollars (BTC-E) and $321 dollars (OKCoin) to renew the momentum higher. A move above the round

Originally appeared at: http://www.forexnews.com/blog/2015/08/06/bitcoin-down-3-dollars-as-range-continues/