My website has been ranking well all last year but last week the rankings dropped so my website traffic was 90% less and then it went back up tuesday and wednesday but has dropped again so I have less than 10% of original traffic. Is this due to the new Google caffeine update which has been released, or is it due to a Google Dance?
It might be because of less visitors are visiting on your website. Just be patient and that traffic you are looking will just go back.
Just compare the data from previous days to see the difference. Normally there would be minimum number of websites that send you high amount of visitors. Check if they're missing on the day your visitor count dropped.
I normally get 90% of my traffic from google, and it is currently around 30% (few thousand visitors are down )