The sharp drop-off that commenced after last week’s sudden rise to over $450 has continued, driving bitcoin (BTC/USD) prices as low as $365 on BTC-e, nearly wiping out all of last week’s gains.
BTC had risen to its highest point in 2 months, raising hopes among traders of a larger recovery or even a return of last year’s November run-up.
BTC is currently holding at $376, mid-way through its range of $365-385 from during the past 24h. Volume is still above recent averages but has calmed down from its run-up levels, averaging 400 BTC per hour.
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Despite retracing 57% of its gains, the rally did at least accomplish the feat of breaking all of BTC’s recent resistance points, most notably the $380 range. This is a necessary step in any long term bottoming process, although it doesn’t necessarily mean that this process has started. Rallies of this scale in September and October were followed by drops to multi-week lows, although it should be noted that the most recent peaks and valleys are higher than their predecessors.
At current levels, BTC has come back within 4% of its 50-day moving average (MA), now worth $360.
Bitcoin’s total losses are 16.5% since peaking. Litecoin, which peaked at $4.17 on BTC-e, has shed only 8% to $3.83.