Bitcoin Price Gives up All of Weekend Gains in Less than 12 Hours

It took less than twelve hours for bitcoin’s (BTC/USD) price to tank by 17% to $220 on BTC-e, giving up

It took less than twelve hours for bitcoin’s (BTC/USD) price to tank by 17% to $220 on BTC-e, giving up all of its hard-earned weekend gains.

The near-vertical drop began immediately after BTC re-tested its 3-week high of $265 but failed to advance further. With buyers depleted from the market, BTC quickly reversed course.

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The earlier stages of the fall, through steep, took place on volumes near 1,000 BTC/hour. After a brief retracement near $240, volumes spiked to over 4,000 BTC/hour and sellers dragged BTC’s price lower by nearly 10%.

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The relative ease with which BTC came off its twin peaks is consistent with a rise built on shaky foundations. Gone is its return above the 50-day moving average (MA). While its latest venture above this mark lasted slightly longer than three weeks ago, the overall pattern is similar to that of the post-Coinbase hype. BTC now finds itself back in the low $200s, territory which it has defended fairly well but which is uncomfortably close to 15-month lows.

The price has since mounted a small recovery, currently trading at $236.

Litecoin (LTC/USD) is back to near $1.80, slightly above its trading range in the $1.70s during the past two weeks.

Prices on BTC-e are $3.50 (1.5%) lower than on its peers, an average offset.

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