Bitcoin (BTC/USD) has now given up virtually all of its gains since the beginning of the month, tumbling another 5% during the past 6h to a one-month low of $235 on BTC-e.
Combined with yesterday’s losses, the price has shed over 11% during the past 30h.
During the peak of yesterday’s selling, one noticed the price clinging on to $254 support, propped up by massive buy orders on the scale of 100-200 BTC. The markets chewed through these in minutes, releasing much pent up selling pressure when the bids were finally depleted.
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In another sign of its return to volatility, bitcoin has fallen convincingly through its 50-day moving average (MA). It first breached the mark–still rising and now caught moving in the wrong direction–one week ago, and again yesterday, during which it at least hovered within recovery range. Today’s drop sends bitcoin a full 6% below the MA.
March and April were particularly volatile months in the crypto (and fiat equity) markets last year. It is not impossible that prices will accelerate their movements, catching margin traders who grew accustomed to the recent stability off guard.
Prices on BTC-e are nearly on par with those on its peers, currently about $0.50 (0.2%) off.