Bitcoin (BTC) has continued its slump into bearish territory, losing over 9% and hitting another 4-month low of $400 minutes ago on BTC-e.
This level breaches the bottom tip of BTC’s flat trading range immediately prior to the May rally. It was really the last line of defense before you get into unknown territory. Any meaningful decline beyond this point can have significant implications.
FBS CopyTrade Launches a New Card Scanning Feature!Go to article >>
BTC has actually slipped below $400 on two occasions this year: once during a volatile period in April following negative China rumors, and again during the flash crash. Both drops were not representative of stable trading conditions and lasted less than 24h.
One has to look back prior to the great rise in November to find any semblance of support below $400. The rapid multifold rise at the time makes this is difficult to gauge, but $200 had offered some stability. This is a potentially ominous signal for Bitcoin investors.
Since breaking through its short-term support point of $460 48h ago, BTC has shed an additional 13%, suggesting that these pivot points are of significant technical relevance.
Interestingly, the spread between BTC-e and Bitstamp has widened to $12 (2.9%), wider than normal. The spread has increasingly widened as the price has gone down.