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Bitcoin is trading down by $7 dollars compared to yesterday’s update. On BTC-E we opened at $223.81, then stayed almost flat for the entire day. But in the early morning hours of the new session we are seeing a renewed bout of BTC selling. In the past four hours we hit a low of $216.12 on BTC-E. We are currently quoted at $217.20 on this exchange, very close to the lows.
On rival exchange OKCoin we opened at $226.20 and closed the day at $226 flat. In the news session BTC/USD fell to a low of $220.00. Prices are trading at $220.12 on OKCoin. The premium on futures has all but disappeared. The nearer contract (expiring August 28th, today) is quoting $221.03. But next week’s contract is trading at only $218.94, well below current spot exchange prices. The far-out September 25th contract is quoting $220.20 right now, just 8 cents above the main USD exchange rate.
These premium prices are more inline with historical norms given the current bitcoin move lower. During downtrends we’ve gotten used to seeing futures trade at no premium and even at a discount to spot prices, usually on the longer-dated futures.
The technical picture is largely unchanged. The first main support level on the way down is at the former double bottom at $210 (BTC-E) and $214 (OKCoin). The September 25th low at $192 (BTC-E) and $195 (OKCoin) may also act as support, followed by this year’s low at $162 (BTC-E) and $172 (OKCoin). A break below this important milestone may exacerbate the losses. On the other side, a breakout above $256 on BTC-E and $259 on OKCoin
Originally appeared at: http://www.forexnews.com/blog/2015/08/28/bitcoin-down-by-7-dollars-today/