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The momentum lower continues for bitcoin. The cryptocurrency retested the $270 dollars level again today. And yet again it was repelled by buying pressure. This was the second test in three days. On BTC-E we hit a low of $271 dollars flat before prices bounced higher. We are currently trading at $277 dollars per coin.
On OKCoin we dipped to a daily low of $273 flat and BTC/USD is currently quoted at $279.23. You can find a live OKCoin chart HERE. On futures the lows differed from $273.32 for next week’s contract to $277.50 for the September 25th contract. Futures contracts continue to trade at a premium over spot, with Sept25 trading at $280.63 right now. This is $11 dollars above the main exchange.
Today’s bounce at $270 adds to the validity of this support level. If the momentum lower continues and prices manage to break this support, the rally will be in jeopardy. The technical end to the rally would be a break below the $260 swing low ($263 OKCoin). But a decisive break below $270 may lead to a momentum move that breaks $260 as well. Be prepared for that possibility.
To switch the momentum to the upside, the bulls will need to push prices above the 2015 high at $318 (BTC-E) and $321 (OKCoin). Higher still, more resistance can be found at the $334 swing high ($340 OKCoin).
In some good news for traders, volatility has been substantially higher during the past month. The Average Daily Range for the past 20 days is now at $13 dollars, over 3 times higher compared to the $3.93 lows marked on June 14th. Here’s a
Originally appeared at: http://www.forexnews.com/blog/2015/07/17/bitcoin-repelled-again-at-270-dollars/