Bitcoin Traps Buyers With Biggest Daily Price Loss in Three Months

Despite an $800 fall on Wednesday, bitcoin's broader trend remains bullish with prices holding above the higher low of $9,075.

Bitcoin took its biggest daily fall in three months on Wednesday, potentially trapping the bulls on the wrong side of the market.

That's the biggest single-day drop since Nov. 21, according to CoinDesk's Bitcoin Price Index.

Bitcoin fell by nearly 6 percent from $8,085 to $8,600 on Nov. 21.

As can be seen above, bitcoin has dropped by more than 3 percent in just 13 days in the last 4.5-months and in five days so far this year.

Bitcoin rose back above $10,000 on Tuesday, seemingly opening the doors for a re-test of the recent highs above $10,500, only to plunge again.

As a result, Wednesday's drop may have trapped some buyers above $10,000.

At time of writing, bitcoin is changing hands just below $9,620 on Bitstamp, while its global average price, as represented by the BPI, is seen at $9,626.

Bitcoin has printed a series of higher lows and higher highs over the last two months.

Bitcoin remains trapped in a descending broadening channel, as seen on the candlestick chart.