Bitcoin Slightly Down as Indecisiveness Continues

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Bitcoin is trading slightly down today as yesterday’s gains fizzled out. On BTC-E we opened at $323.86, stayed flat for the first half of the session then mini-crashed to $315.58 in the span of one hour. But near the lows the general market indecisiveness came back and the bulls pushed prices back up. We closed the day at $320.83, about $3 dollars below the open. We’re now several hours in the new session and BTC/USD is trading pretty much unchanged at $320.823.

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On OKCoin we had a similar session with milder swings. Here BTC/USD initially dipped from $325.43 to a daily low of $320.53, followed by a close at $324.48. We are currently quoted at $323.42 on this exchange.

OKCoin futures are trading a bit higher at $324.70 for the near contact and $329.14 for the December 25th issue. This is partially due to higher prices on Chinese exchanges. Most CNY sites are selling bitcoin for 2,707 Yuan or $326 dollars.

On the 1 Hour chart above we can see that for the past ten days bitcoin has been trading range-bound. The rough boundaries of this congestion are $310 on the downside and $350 on the upside. Note that these are not breakout bounds. A move above $350 may have some follow-through but to see a sustainable rally, the November highs at $504 need to be taken out as well.

On the lower end we have several weaker support levels at $320, followed by the $307 swing low and the round $300 figure. But to end the current stalemate and restart the downtrend, BTC/USD will need to break $290 dollars on OKCoin. Taking into account the current $2-3 discount, this corresponds to around $287 dollars on BTC-E.

The two risk events coming up this week are the pending EU decision and Bitcoin Black Friday. It’s unclear if the EU ministers recommended new bitcoin rules at their Friday meeting. Several news outlets requested information from EU institutions about the outcome of the meeting, so we should get an answer in the next few days. We’ll write more about Bitcoin Black Friday in our future articles.

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