Bitcoin (BTC/USD), hours ago showing signs of hanging on to a recently established support level of $480, has indeed ploughed lower. The level was not nearly strong enough to fend off strong downward momentum weighing on crypto markets today.
BTC/USD hit another multi-month low of $463.50 on BTC-e and is now trading at $470.
The spread between BTC-e and its peers like Bitstamp continues to be around 1.5%.
With the recent declines, volume has picked up considerably, back to about 300 BTC per hour.
BTC continues to fall further behind its 200-day moving average, slow to keep up following the long stretches of flat trading in June and July. It is now a whopping 17% below this level, the biggest offset since late May during the height of its rally.
Having slipped below $545 last week, it was assessed that there are really no technical lines of defense between current prices and $450, the last stable trading level prior to the May rally.
Total declines during the past 7 days are now in excess of 20%. The last time the pair lost this much was during volatile trade in late April, which was followed by long stretch of flat trade and then the May rally. Here, however, further declines are likely before any sort of recovery gets under way.
Fundamentally, there does not appear to be anything too wrong with Bitcoin these days. It is getting a warm reception in Britain and may even be brought on by arch-rival PayPal.
