Recently my 4 months old website punished by Google. It was getting 4500 to 6000 impressions and 90 to 110 visitors which reduced to 600 to 700 impressions and 20 to 25 visitors per day over the night and same trend is continued since a week.
It happened second time since I launched the website. After 1 month of launching website visitors start increasing gradually and after sustaining 10-12 days similar situation arise (as mentioned above). After 1 month traffic recovered again and exactly 1 month later it went again over the night. Currently for long-tail keywords on which I was at 1st page last days, it is showing different page of my website at 6th or 7th page.
I also received an alert in Webmaster Tool for "Increase 404s" which was showing 37 pages on the same day when traffic was drop on 19th. I resolved that issue very next day.
I've unique quality content at my website. Google Webmaster Tool is showing 600 Inbound Links distributed in 80 different pages of my website which are coming from Social Media, Personal Blogs, Article Websites and from 4-5 Authority Directories such as Business.com.
I would appreciate if someone can share their thought on the issue.