Want to Trade Bitcoin? ForexNews RecommmendsClick Here To Learn More.
Bitcoin is still in retracement mode. After bouncing at the 50 percent retracement level yesterday, prices rallied to a high of $249.08. This is approximately close to the 23.6 Fibonacci level. It’s also close to the important $250 mark. We have since fallen back somewhat with BTC/USD currently quoted at $244.83. OKCoin was down at the time this article was written so I can’t give an update on their prices.
The rally will remain in place until the support near $230 dollars gives way. For OKCoin this corresponds to $227 dollars. But to continue the momentum higher, BTC will need to break this week’s high at $257 dollars ($259 OKCoin). There is resistance level close to here, so a better breakout point is $259 on BTC-E and $263 on OKCoin. More resistance can be found at $270 and $300. Of these two, the round $300 figure is a triple top that ended two previous BTC rallies. A breakout above it could exacerbate the gains. For OKCoin this level was at $305.
Note that the OKCoin levels apply to the exchange platform, not futures. Futures contracts tend to have higher price oscillations and varying degrees of premium/discount based on the date of delivery and the current trend. For example, at the time of yesterday’s snapshot, the main exchange was trading at $239.26 while the June 26th contract was trading at $241.54. Meanwhile the far out September 25th contract was quoting prices over $3 dollars higher compared to spot at $242.89. In the last four days we’ve seen this premium trade as high as $9 dollars.
During strong trends to the upside you’ll
Originally appeared at: http://www.forexnews.com/blog/2015/06/21/bitcoin-still-in-pullback-mode/