Investing.com - Bitcoin prices looked set to retest the key $300-support level on Tuesday, as bearish chart signals and concerns about possible regulation of the virtual currency weighed.
Bitcoin (BTC/USD) lost $13.47, or 4.07%, on Slovenia-based BitStamp to trade at $317.34 during U.S. morning hours.
Bitcoin tumbled to $275.00 on Monday, a level not seen since November 2013, before turning higher to settle at $328.59.
The price of a bitcoin on Bulgaria-based BTC-e fell $13.72, or 4.16%, to trade at $316.07, while prices on Singapore-based itBit slumped $12.61, or 3.82%, to trade at $317.91.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency shed 2.76% to trade at $319.39.
Bitcoin plunged by as much as $99.62, or 26.6%, over the weekend to hit an 11-month low, amid heavy volume but without any obvious trigger.
A number of traders and market analysts attributed the plunge to price manipulation by short-term profiteers who are deliberately driving prices down to eventually buy them back at lows.
Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) declined €4.32, or 1.63%, to trade at €260.62 on U.S.-based Kraken Exchange.
Elsewhere, yuan-denominated Bitcoin prices sank CNY80.49, or 3.87%, to trade at CNY2,001.87 yuan on Beijing-based OKCoin, while prices on Shanghai-based BTC China retreated CNY40.30, or 1.98%, to trade at CNY1,999.95.
Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.
Prices of the virtual currency are down nearly 55% from its June highs of $683, and roughly 75% below its all-time high near the $1,240-level hit in late November 2013.
Bitcoin’s market cap is down to just $4 billion, after peaking at $13.9 billion in December 2013, even as the virtual currency has been getting more popular with merchants and retailers in recent months, including PayPal, Overstock.com (NASDAQ:OSTK), Expedia (NASDAQ:EXPE) and Dell.