Bitcoin (BTC/USD) has had a tough time of late overcoming the $300 mark. For the second time in 2015, bitcoin has been flirting with $300 but has once again returned empty-handed.
Bitcoin tumbled from $290 to as low as $272, a loss of over 6%, on BTC-e. It is currently trading at $279 in a resumption of tight trading. During the past 12h, it has not deviated from its average by more than 1%.
The drop, while the biggest in nearly a week, took place on relatively low volume, only momentarily exceeding a rate of 1,000 BTC/hour.
Bitcoin also failed to maintain much traction above the $300 mark following the hype leading up to the launch of Coinbase Exchange. It peaked at $304, but quickly withdrew from the psychologically significant threshold within a few hours as traders sold on the news.
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Bitcoin has thus yet to hold ground above $300 in 2015, though it has also shown a recent aversion to revisiting previous lows. A long-term view shows bitcoin has been in a healthy, stable uptrend during the past month, in contrast with its wild advances during the Coinbase hype in late January. Retracements like this weekend’s are perfectly within order during long-term uptrends.
Prices are still well above their 50-day moving average (MA), which has continued its climb for the first time since last July, further indicating a possible bottoming process.
Overall, the next move is a tough call. But any serious break above $300 will likely be met with heavy buying as traders return to the floor.
Prices on BTC-e have once again returned to their typical discount relative to other exchanges, and then some, now over $5 (1.8%) off.