Bitcoin (BTC/USD) posted two sudden drops of 3% during the past 24 hours, separated by a brief retracement, sending it below $370 for the first time in five days on BTC-e.
The pair had been enjoying its longest stretch of stability since October, trading no more than 2% off of its average price of $377. The stability has kept the pair above its 50-day moving average (MA) for 10 days, matching its tenure above the mark prior to its drop to $340 two weeks ago. Prior to that, the pair had bot-traded above this level since late July.
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The biggest hurdle right now is the $380s. Today’s activity is a reminder that such windows of opportunity are not open indefinitely. Whether the piercing of $370 was just a fluke or whether it will propagate further is unclear at this point. It took place on moderate volume which has since waned.
The gap between prices on BTC-e and its peers has widened to $7 (1.9%), which is not uncommon during sudden drops.