Bitcoin Trading Up and Down All Week

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Bitcoin has been trading up and down all week. On Monday we saw a surge in prices from $231 to $237 dollars per coin. But by Wednesday and early Thursday BTC/USD had fallen to a low of $232.40. Thursday afternoon we had another attempt to break higher but we only came as close as $236.99. From here we sold-off aggressively yet again, this time to a low of $233.18. We are currently quoted at $233.52 on BTC-E. The 1 hour chart below shows this week’s range-bound market.

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Together with this week (which is still incomplete), bitcoin has spent the last five weeks stuck in a range. Going back in time we can see that bitcoin stayed essentially flat during most of 2015, albeit with some wild swings, . We noted  this development in our yesterday article. The longer this congestion goes on, the more odds increase for a breakout higher/lower.

The two major breakout points for BTC are at $250 on the top and $216 on the bottom. For OKCoin these levels correspond to $250 and $220 dollars per coin. A decisive breakout beyond one of these bounds may start a new trend.

On the downside things are a bit murky, with two extra support levels adding to the confusion. Weaker support can be found at $220 (BTC-E) and $224 (OKCoin). On the other hand, a stronger level is the previous double bottom for bitcoin at $210 (BTC-E) and $214 (OKCoin). A clean break below here should intensify the losses.

On the higher end, the first major resistance after $250 is at $269 dollars on BTC-E and $272 dollars on OKCoin. A decisive break higher

Originally appeared at: http://www.forexnews.com/blog/2015/10/02/bitcoin-trading-up-and-down-all-week/