The price for bitcoin (BTC/USD) spiked sharply back above $300 on BTC-e 12 hours ago. For traders looking for a sign that a recovery may soon be in the works, the move above this psychologically important level be may be encouraging.

The spike saw BTC rise as much as 7% within three hours and peak at $303. Since hitting a 14-month low of $260 earlier this week, BTC has recovered as much as 16%.

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The question is, following some retracement, whether the trend will continue. Looking at the catalysts for the rise, it appears that it won’t. The spike appears to have been inspired by a sudden spike in volume to over 6,000 BTC within two hours. Prior to the spike, volume had been averaging 100-200 BTC/hour. It is unknown what caused the sudden surge in demand, but traders appear to be cashing in, pressuring prices downward. BTC is currently trading at $288 and looks poised to continue drifting lower over the next few hours.

We’ll get a better perspective over the next 48 hours, when BTC will have the opportunity to retest its $285 floor. Should it fall through, a revisitation of the $300 level is unlikely in the near-term and the mid-late $200s will become the new norm for the next little while.