Bitcoin Prints Red as Volatility Dips

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After yesterday’s 2 percent loss today we’re down again, albeit slightly. On BTC-E we opened at $284.93, rallied briefly to $285.97, before falling back down. Near the end of the session we hit a low of $281.56. In the first four hours of the new session BTC dipped to a new 4-day low at $281.20. We are currently quoted at $282.18 , not far from the lows.

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On OKCoin we had a similar day with prices dipping from $290 to $287 dollars per coin. We are currently trading at $287.12 on this exchange.

Today’s 1 percent loss is nothing to write home about, when we take into account bitcoin’s volatility. The 10-day Average True Range is currently at $6 dollars and 74 cents. And this is during the last 10 days, which were relatively slow. Today’s range is well below that at $4.41.

The market can’t seen to decide between pushing the pair higher or lower. From July 25th to July 29th we had a four day winning streak. But the combined gains during that time period were below $7 dollars. In the last two days the combined losses are also small, around $9 dollars in total.

We will need to break some of the important levels to see larger movements. On the lower end, the key level is still $270 dollars per coin. A decisive breakdown below it should end the current rally. For BTC-E, a break of the lower $265 handle may be more appropriate due to the current $5 discount. On the top end, a break of the $300 round figure may have limited follow-through this time around.

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Originally appeared at: http://www.forexnews.com/blog/2015/07/31/bitcoin-prints-red-as-volatility-dips/