Bitcoin price takes a plunge

BTC/USD fell sharply by as much as 5% to $225 on BTC-e, following a brief retracement back above $235, and now targets 24 hour lows. The plunge pulls the bitcoin price below the 50-DMA, which it breached recently due to a combination of its stability and the moving average trying to balance the poor performance seen in the beginning of the year.

Moreover, prices have been moving away gradually from the $210 support level, which has not been broken since the volatility seen in mid-January.

The future mid-term direction is also vague. Short-term traders might be limited within a thin trading range, while long term traders might wait for a clear signal for a buying opportunity.

Volumes have been whippy, less than 200 BTC/hour on an average, but with sporadic spikes to above 500.