Bitcoin (BTC/USD) fell unexpectedly to below $358 on BTC-e, a 10-day low, during the past four hours of trading. The drop of 3.2 % was its sharpest in 10 days, as well.
Though price swings of 3% are an everyday occurrence in crypto trading, today’s drop came without warning. BTC had been trading tightly around $370 for most of the 10-day period. In the 24 hours prior to the drop, it had barely deviated from $370 by more than 1%. Volume was below normal at about 100 BTC per hour.
The drop was accompanied by a multifold spike in volume to about 500 BTC/hour, which likely reflected an oversized sell order.
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The mid-$350s represent BTC’s short-term support point which, if broken, can trigger further declines back into the $340’s. BTC’s repeated failure to climb out of the $380s made for a precarious position, whereby moves to the downside became more likely over time.
The drop has also sent the pair back below the 50-day moving average (MA), now at $361. The pair had been testing it repeatedly during the past 10 days, dipping below on occasion and suggesting bearish momentum in the near term.
Prices of BTC-e are $6 off from those of its peers, a larger-than-normal spread which is not uncommon during sudden drops in the market.