Bitcoin Up $1 Dollar as 4-Day Range Stands

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Bitcoin had another low range day. After opening at $230.11 BTC/USD rallied to a daily high of $233.09, before falling back to close at $231.81. A total daily gain of $1 dollar and 70 cents. This continues the range of the last 4 days, during which the total span high to low is only $5.17 dollars. On OKCoin prices are currently trading at $229.40 while BitStamp is quoting $229.30.

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OKCoin futures are trading on par with spot, with the nearest June 19th contract at $229.46 and the far out quarterly contract expiring on September 25th at $229.56. This indicates that traders don’t have bias for the future. In the past, futures have followed the current momentum. During strong rallies, we’ve seen the far out contracts quoting prices $10 dollars above spot. The current lack of bias just confirms what the charts are already showing, no clear direction.

But a directionless market isn’t the only problem for bitcoin traders. Volatility has been on a constant decline since the end of January, making daily ranges smaller and harder to trade. The 20-day ATR, a common measure of volatility, just hit a new one and half years low today.

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The popular indicator closed at $4.10, a level not seen since September of 2013. While a large part of this is due to bitcoin’s declining value, we have seen the ATR drop from $26 dollars on January 29th to $12 dollars on April 1st, to $4 dollars yesterday. During this time bitcoin’s price continued to oscillate around the $230 mark.

Although the lost momentum buried the

Originally appeared at: http://www.forexnews.com/blog/2015/06/13/bitcoin-up-1-dollar-as-4-day-range-stands/