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Bitcoin keeps pushing on the important $270 support level. Today we had yet another test, 3rd time in the last five days. And yet again the bears were repelled with BTC/USD hitting a high of $276.16 few hours later. But again the move higher sizzled out quickly with bitcoin trading back down the the $270 area. We are currently quoted at $273.91 on BTC-E.
Things are looking slightly better on other exchanges but not by much. For example on OKCoin we hit a low of $269.68 and we are currently trading at $279 dollars per coin. The rest of the pack (BitStamp, Coinbase etc) are quoting near OKCoin’s price.
The constant pushing on the support at $270 dollars is not good for the bullish scenario. With each test, the odds increase that we will get a break below. And if $270 goes, the swing low at $260 dollars won’t be far behind. A clearing of this area (marked in yellow on the chart above) would end the bitcoin rally. More support levels below can be found at $250, $240 and $230 dollars per coin. During the rally higher, prices formed three swing lows near each of these levels. This was where the retracements ended and the new leg higher began. The $250 mark is more important then the rest because it was the breakout point for the current BTC rally.
To regain the lost momentum, the bulls will need to push prices above the 2015 high at $318 (BTC-E) and $321 (OKCoin). Simply due to the proximity of the $260/$270 support area, a move lower is the more likely scenario then a break above $310.
Originally appeared at: http://www.forexnews.com/blog/2015/07/17/bitcoin-pushing-on-important-support-level/