Investing.com – Bitcoin prices hovered below the $400-level on Wednesday, as investors sold the virtual currency amid bearish chart signals.
Bitcoin (BTC/USD) fell $17.17, or 4.21%, to trade at $390.93 on Slovenia-based BitStamp during U.S. morning hours.
BitStamp rallied to $416.65 on Tuesday, the strongest level since September 25. Prices tumbled to an 11-month low of $275.00 on October 6.
The price of a bitcoin on Bulgaria-based BTC-e shed $15.56, or 3.91%, to trade at $382.74, while prices on Singapore-based itBit retreated $6.55, or 1.67%, to trade at $386.17.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency lost 2.79% to trade at $387.59.
Prices of the virtual currency have recouped all of the losses suffered earlier in the month as investors returned to the market to seek cheap valuations.
A number of traders and market analysts attributed the recent slide 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) dropped €8.25, or 2.63%, to trade at €306.00 on U.S.-based Kraken Exchange.
Elsewhere, yuan-denominated Bitcoin prices edged down CNY47.83, or 1.96%, to trade at CNY2,390.65 yuan on Shanghai-based BTC China, while prices dipped CNY83.18, or 3.36%, to trade at CNY2,390.99 on Beijing-based OK Coin.
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 45% from its June highs of $683, and roughly 70% 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, Expedia, Overstock.com and Dell.