Bitcoin recovered nicely from the large retracement yesterday. On BTC-E we closed higher by $11 dollars today. Prices broke the previous monthly high at $288.90 and hit $292.65 before falling back. We are currently quoted at $289.80 on this exchange.
We saw new highs on OKCoin as well. Here bitcoin topped out at $298.78, 78 cents above the October 25th high. One coin is selling for $295.66 at the moment, very close to the highs.
Futures on the same platform rallied as well, although they failed to make new highs. The contract expiring this Friday hit a high of $307.16, below the previous high at $309.13. The far-out December 25th issue topped out at $319.37, below the October 25th high at $327.57. Futures have a hard time catching up after yesterday’s sharp correction.
The next important resistance is at $300 dollars per coin. Including today’s test, prices already traded very close to this level on two separate occasions. The trend is still up, as is the momentum. A decisive break above $300 dollars on OKCoin may intensify the gains. Due to the large price difference, it’s hard to quantify where this level is on BTC-E, so it’s probably best to watch OKCoin and other USD exchange instead. You can find live quotes from most major bitcoin exchanges HERE.
Above $300, we find some resistance at the July highs, $310 on BTC-E and $314 on OKCoin, followed by this year’s high for bitcoin at $318 dollars (BTC-E) and $321 dollars (OKCoin). To end the current rally we will need to see a breakdown below the most recent swing low at $256.88 (BTC-E) and $260.37 (OKCoin). Note that the levels above are for OKCoin’s USD spot exchange, not futures. As we saw yesterday futures contracts fluctuate wildly and will often overshoot the current move. This makes pinpointing exact support/resistance levels very difficult.
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