Bitcoin (BTC/USD) has turned sharply lower in the past hour, losing as much 6% to $354 on BTC-e. It is currently trading at $362.
The break below $360 continues the head and shoulders pattern that had been in formation. $360 had been the final point of support before the pattern was confirmed. It was assessed that the emergence of such a pattern will likely lead to further declines into the low $300’s during the short-intermediate term.
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The sheer momentum of the drop, which has been accompanied by a volume spike of 2600 BTC (~$962,000), indicates that it may take at a few hours before until solid ground is discovered.
The sudden drop has also sent BTC back below its 50-day moving average (MA), which also at $360, underscored the significance of the support level. BTC spent 12 days above the mark after not having traded in the range since late July when prices were in the low $600’s.
As is common for such drops, the price disparity between BTC-e and its peers has reversed, with prices on the former about $7 (1.9%) higher.