Bitcoin Pushing on Upper Bound

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Bitcoin is pushing on the upper bound of the range. Today prices briefly traded above the August 28th swing high on both BTC-E and OKCoin. On BTC-E we hit a high of $231.81. But we didn’t even get an hourly close above the $231 figure and as we can see on the chart below, bitcoin is currently trading below the $230 mark.

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On rival exchange OKCoin we hit a daily high of $237 flat before aggressive selling took down prices back to $230. We are currently quoted at $235.00 on this exchange. This is right at the mark identified as important resistance in our article yesterday. To repeat what we said: ”a decisive break above $231 on BTC-E and $235 on OKCoin may end the current downtrend.”

Today’s break was too short-lived to be called decisive. Prices didn’t even breach the August 20th swing high at $238.90 on OKCoin, another important resistance level for bitcoin. This means that technically the bearish trend is still in place. Still, taking into account how close we are trading to this resistance cluster, the odds are slated that we will see a break higher soon and with it, an end to the downtrend.

Higher up we find the important $250 figure. This previous resistance turned to support and is now back to providing resistance again. A break above it should provide some follow-through. But to generate a new uptrend, the bulls will need to push prices above $258 (BTC-E) and $260 (OKCoin).

On the lower end the first important support is at $210 (BTC-E) and $214 (OKCoin), followed by weak support at $200 dollars. The September 25th swing low

Originally appeared at: http://www.forexnews.com/blog/2015/09/05/bitcoin-pushing-on-upper-bound/