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Bitcoin ended its five-day winning streak today. Prices are trading down by $6 dollars or just above 2 percent on OKCoin. The last four of the five days saw a combined gain of $7 dollars however. This means that today’s sell-off nearly wiped out all the gains accrued during those days. We are currently quoted at $288.33 on OKCoin, as can be seen on the daily chart below.
On BTC-E we fell by $4.40 dollars, from $287.70 to $283.30 right now. Futures have eased up somewhat with the September 25th contract quoting $301.60, about $13 dollars above spot. This compares to $15 dollars seen in yesterday’s trading session.
If the losses continue, expect to see this contract outpacing the losses seen on main spot exchange. These far-out quarterly contracts tend to overshoot prices during rallies and stabilize, sometimes even trade at a discount, during market sell-offs. When trading futures you may also experience clawbacks. More on what this is and the potential effect to your bottom line HERE.
Despite today’s losses the trend is still up. To end it, the bears will need to push BTC/USD below $265 on BTC-E and $269 on OKCoin. But to renew the momentum higher and see large daily gains agaib, bitcoin will likely need to trade much higher. There is a larger resistance area stretching from the July highs to the yearly highs. On BTC-E this is from $310 to $318 dollars, on OKCoin it’s from $314 to $321 dollars. A breakout above this area may be the push that’s needed for stronger BTC gains.
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Originally appeared at: http://www.forexnews.com/blog/2015/07/29/bitcoin-ends-five-day-winning-streak/