ForexMinute.com – After trending sideways in a congested pattern for days, the Bitcoin price in the US market took a severe hit as it fell around 7% to its 1-week low. The crash occurred almost instantly when an individual (or a group of individuals) started dumping off their investments during the 7th UTC hour.
On BitStamp, the BTC/USD crashed to 362 from its previous high of 376. This fall enticed more selling in the following hours, and subsequently overtook the buyers’ sentiment. Before the crash, the 365-370 area was acting as a strong support level to start another rally towards last week’s peak of 453. Breaking below it brought the market to a strong bearish channel, where the price is still stuffing to escape from.
The price fell in a similar fashion on other cryptocurrency exchanges as well, with BTC-e recording a 4.20% and itBit recording a 6% fall in the last few hours. In the meantime, the price fell from 367 to 355 on CoinDesk BPI, which accumulates the average of all Bitcoin exchanges to display a collaborative Bitcoin price movement.
In recent days, the Bitcoin price was trending sideways amid low trading volume and volatility, indicating a low demand and supply from/in the market. The arrival of this neutral sentiment coincides with the Fed’s announcement to auction 50k Silk Road Bitcoins. We have earlier said in our Cryptocurrency Trading News report that traders might want to hold-off to their coins until the auction date is passed (December 4th). But we also feared the arrival of impatient traders at this point of time, which might either push or pull the price by extreme levels.
As the bearish sentiment is prevailing in current price patterns, the BTC/USD might test 350 as the next resistance level. In case the price breaks below it, the market may repeat the late-October downward movement, where price crashed to as low as 318.
In case the buyers wake up, the price might want to treat its previous support level of 365 as resistance this time. However, the current market mood is bearish.
To contact the reporter of the story: Yashu Gola at email@example.com