Bitcoin (BTC) investors are going through one of the most miserable weekends this year as volatility has returned to the crytpo markets.
BTC just hit a new 2014 low of $304, falling even below the $309 mark during August’s flash crash. The current price is the lowest since November 11 last year, when BTC was in the earlier stages of its multifold ascent to $1100.
But this was no flash crash. The losses began Friday, spanning over 3 days and now totaling 17%. The stage had been set when BTC barely pierced its 2014 low and hit $361 one week ago. After this support level was broken, the initial stage of the decline progressed quickly, thereafter transitioning into a drawn out, staggered slide. And as assessed last week, conditions were ripe for a decline to the low 300’s. There are no support points between $200 and $400, so any breaking of recent lows is liable to snowball.
Following the first low of $310, BTC did bounce 8% to $336, but then suddenly reversed course and progressed to yet another low. It has lost 9.5% in only 4 hours.
Historically, BTC has easily pulled off 17% losses within 24h. This considered, plus the lack of any historical support, it is possible that we won’t see a break from the selling just yet.
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As typical in a volatile market, the spread between BTC-e and its peers has widened to $9 (3%).
Alts tag along
Litecoin (LTC) has resumed its trailing of Bitcoin activity, also trading at 2014 lows, now at $3.52. Unlike BTC, it is still well above its flash crash low of $3.33.
It continues to conform to the pattern where following BTC is only allowed during major moves. When BTC slowly gravitated back to the 360’s, Litecoin had actually held its ground fairly well.
Unlike in previous major market moves, however, LTC has not compounded BTC’s losses. The two shedding roughly an equal percentage, LTC/BTC is still challenging multi-week highs.
Most other alts have also declined by similar proportions during the 3-day period and the past 24h.