Bitcoin Down $8 Dollars as Streak Ends

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Bitcoin ended its five-day winning streak today after prices closed down by $6 dollars. On BTC-E we opened at $242.98 and slowly lost ground until a daily low of $233.01 was hit around mid-day. As can be seen on the chart below, this is where BTC/USD had a small relief rally back to $238 dollars per coin. But soon after prices fell again and now bitcoin is quoted at $234.38 on this exchange, not far from the lows.


On OKCoin we saw similar action today but with smaller losses. We opened at $243.04 and closed at $238.82. One coin is currently selling for $238.68 on OKCoin exchange. Meanwhile futures on the same platform are quoting $238.65 for the nearer expiring contract while the September 26th issue is trading just a tad higher at $239.15.

Today’s pullback shouldn’t come as a surprise to our readers. In our yesterday article we went over the last few instances when bitcoin had a large winning streak. In most of these, the streak ended after 5 or 6 days of straight gains. This, along with prices coming up on a major resistance at $250 dollars, led us to caution traders.

A decisive break above $250 dollars may start a new uptrend for bitcoin, although we would prefer to see a bit more consolidation as the downtrend ended just few days ago. Above here, the $269 swing high on BTC-E and $272 on OKCoin is another important resistance level. On the lower end, the first notable support is at the former double bottom $210 (BTC-E) and $214 (OKCoin). Bit below the round $200 dollars figure may offer weak support.

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