Bitcoin (BTC/USD) has broken back through yet another support level as the pattern of weekend doldrums hitting the pair earlier this year appears to have returned.
BTC broke through the $340-$350 support platform 24h ago, hitting $337, hours after breaching the $360 mark on BTC-e. It has since bounced back as high as $360, now trading at $351.
Upon breaking $360, it was assessed that BTC is likely gradually completing a cycle of return back to the low $300’s. There is little historical support between current levels and $200, a range whose one-year anniversary of achievement is days away.
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Should BTC approach that “touchy” level of $300 again, be on the lookout for some highly irregular trading activity and sharp moves in either direction. On BTC’s last tumble into the $300 patch, it was believed that stop orders of early adopters were activated, while abnormally large orders trapped prices below $300 for an extended period.
Volume has averaged about 300 BTC an hour.
The gap between BTC-e and Bitstamp has shrunk to $1.20 (0.3%), perhaps a signal of impending volatility. One of the anomalies during the aforementioned descent to $300 was a reversal in the BTC-e/Bitstamp gap, with the former exhibiting a premium of as much as 3%.