Bitcoin Retests $252 as Prices Fall Further

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Bitcoin bounced off the $252 mark on BTC-E for a second time this month. On August 9th we hit $252 soon after BTC/USD broke below the important $270 support. And today we traded close to this swing low on two separate occasions. The first dip hit a low of $252.81, after which a small rally to $256.53 followed. Few hours later a second try hit a low of $251.74. This new low has been holding for the past several hours on BTC-E. We are currently quoted at $254.50.

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OKCoin’s USD exchange joined BTC-E lower, narrowing the gap between the two exchanges. Today we fell from $262.50 to a low of $255.70. Later in the day a new low was formed at $255.40. One bitcoin is currently selling for $256.13. You can find a live OKCoin chart HERE.

Futures on the same platform fell as well, but they are are still holding onto a sizable premium over spot. This is unusual, in a downtrend we usually see futures prices trading at no premium or at a slight discount. The reason why this isn’t happening has been explained in our previous articles. The nearer August 21st contract is trading at $262.58 while the far out September 25th is at $266.80 dollars.

We’re edging closer to the important $250 mark. This was the starting point for bitcoin’s latest rally higher. It may act as decisive support on the way down. A break below could usher in a new downtrend, at least in the short-term. Further down some weak support can be found at $240 and $230 dollars per coin on BTC-E.

Given the current price differential, these

Originally appeared at: http://www.forexnews.com/blog/2015/08/16/bitcoin-retests-252-as-prices-fall-further/