Bitcoin Price Breaks Slumber, but Litecoin Unmoved

Bitcoin’s price (BTC/USD) jumped sharply higher this weekend, rising by as much as 10% to $254 on BTC-e. Historically, such

Bitcoin’s price (BTC/USD) jumped sharply higher this weekend, rising by as much as 10% to $254 on BTC-e.

Historically, such price swings are not uncommon for bitcoin. But the sudden rise broke what had been yet another lengthy stretch of some of the quietest trade in recent memory.

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Bitcoin spent the majority of last week dabbling in the low $230s, barely budging more than 1% in either direction. Historically, lengthy stretches of abnormally quiet behavior are frequently compensated for with major moves in either direction.

Bitcoin’s flat activity helped it gravitate back toward its 50-day moving average (MA), which it had been straddling for nearly two weeks. The jump sent it well clear of this mark, which has now settled to below $230. Its distance from this mark is now similar to that of two weeks ago when bitcoin jumped above $260 and to that in late January when bitcoin briefly jumped past $300. Bitcoin has not traded this far above the MA since last November.

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The continued stability relative to short-term history strengthens the notion of a possible bottoming process, but a lot would have to fall into place for this to happen.

Unlike during the previous mini-rally, BTC has held onto the majority of its gains–mirroring its flat profile prior to the rally, only $15 higher. It is currently trading at $246.

Litecoin, however, has not followed bitcoin’s lead as it typically has in previous rallies. It did make a large move relative to its trailing profile, but the magnitude was but a fraction of bitcoin’s–3% to$1.84, most of which has already been given back. Volume is below average with just under $1 million traded during the past 24 hours. The resultant LTC/BTC rate has thus declined to a 6-week low of 0.0072.

The spread between BTC-e and its peers continues to be wider than normal. It is currently around $6 (2.4%).

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