Bitcoin Trades Flat, Ranges Tighten

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Bitcoin traded flat today on BTC-E. We opened at $230.04, traded higher ever so slightly to $230.48 then fell to a low of $227.22 by mid-day. The second half of the session saw the losses recovered with BTC/USD closing at $228.95. In the next few hours of the new session, we’ve continued to slowly gain back the lost ground. Bitcoin is currently quoted at $229.92, just 12 cents below yesterday’s open.

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The total daily range on BTC-E was only $3 dollars and 26 cents. This continues the string of low range days, which in large part have contributed to the ATR halving in the past ten days. The 14-day ATR, displaying the average daily range for the past 14 days, has fallen to a new multi-month low of $6.55. We haven’t traded this low since June 18th of this year. Just as a reminder, the slow May/June period was followed by two large breakouts during July/August, first on the upside, then to the downside.

What are some of the levels we’re watching? To spark a new rally, bitcoin will need to break above the important $250 dollars mark.This level was the starting point for both the rally in July and the August crash. With prices now below the figure, it should act as resistance once more. Above here, more resistance can be found at swing high of $269 (BTC-E) and $272 (OKCoin).

On the lower end, a clean break below the $216 swing low on BTC-E ($220 OKCoin) may restart the downtrend. However, as we’ve said previously, very close to this level is the former double bottom at $210 (BTC-E) and $214 (OKCoin). The

Originally appeared at: http://www.forexnews.com/blog/2015/09/19/bitcoin-flat-ranges-tighten/