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Currencies BitCoin Bitcoin: BTC/USD Technical Analysis – 8th December 2014

Bitcoin

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.

BTC/USD, Dec 8

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.

About DC Magnates

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Created by the team at Forex Magnates, Digital Currency Magnates was founded on the premise that “the future of money is digital”.  With this in mind DC Magnates was created to become a source of news and research for the digital currency industry, reporting on breaking news, unique companies  and alt-coins bringing innovation to the market, as well as a portal for real time trading information featuring analysis and charts.