Bitcoin up $3 Dollars, Nears $330

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Bitcoin is up another day and now nearing the $330 figure again. On BTC-E we opened at $319.76, dipped very slightly to $317.50 before rallying to a daily high of $326.16. We are currently quoted at $323.53, only a new couple of dollars below the price before the EU-inspired crash. On the chart below we can see this recovery unfold nicely in the past two days.


On rival exchange OKCoin we opened at $321.31, rallied to a daily high of $328.99 before falling to $327.09 right now. Chinese exchanges are trading bit higher today at 2,103 Yuan or $330 per BTC. The $2-$3 dollars premium on CNY sites is within historical values. This was the normal premium before a series of devaluations and rate cuts in China threw a money wrench in the works. The premium is translating into a nice premium on bitcoin futures as well, with $2 dollars for the nearest contract and $7 dollars for the far-out December issue.

While bitcoin has seen some gains the in the past 48 hours, the longer-term picture remains range-bound. Since the end of the rally on November 11th we’ve been stuck in a wide range from $310 to $350 dollars per coin. While a break above $350 may have some follow-through, a restart of the uptrend requires a move above the November highs at $504.

On the downside, weak support can be found at the low of the range near $307-$310 dollars, followed by the round $300 figure. But to start a new downtrend, the bears will need to push for a decisive break below $290 dollars per coin. The levels above are for OKCoin’s USD spot exchange, not futures. They can be applied to most USD sites, with small modifications. For example, BTC-E usually trades at a $2-$3 discount to the general USD market while BitFinex and OKCoin tend to closely mirror each other.

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