Bitcoin Investors In For More Pain As Prices Hit 13-Month Low Below $6,000
(Kitco News)- The digitalcurrency market is attracting new attention of the wrong kind as marketanalysts warn that they see further declines in the near-term as the newdowntrend picks up momentum.
Bitcoin,the leader in the cryptocurrency sector, has fallen further below the $6,000level as it trades near its lowest level in 13 months. According to Kitco.comaggregated charts, bitcoin last traded at 5664.80 per token, down 4.35% on theday. The drop comes after Wednesday’s sharp 9% drop.
Bitcoin isdown 66% since the start of the year, but is still the best performer in thesector. Looking at other digital currencies year to date: ethereum is down 84% litecoinis down 85% and ripple is down 86%.
JimWyckoff, senior technical analyst at Kitco.com noted that the latest selloffhas “inflicted” serious technical chart damage.
“More downsideis likely in the near term,” he said. “The crypto sector is in serious troubleand the crypto bulls need to step up and stop the bleeding to avoid a majortrain-wreck in the sector.”
MikeMcGlone, senior commodity strategist at Bloomberg Intelligence said that thelatest selloff was sparked by a hard fork in Bitcoin Cash, creating anothercryptocurrency under the bitcoin banner.
Accordingto reports, the fork will see bitcoin cash split into “Bitcoin ABC” or coreBitcoin Cash and “Bitcoin SV” or “Satoshi's Vision.” Bitcoin Cash itself was ahard fork, created in August 2017 from Bitcoin Classic.
“Mostsupply, demand and market-price indicators remain negative for what remainhighly speculative cryptographic assets. The ‘hard fork,’ Bitcoin Cash, representsthe unlimited-supply overhang to prices,” he said. “If recent history is aguide, Bitcoin is at a high risk of further price weakness.”
In thelong-term, McGlone said that he could see bitcoin falling as low as $1,450before this selloff is over, which also represents a parity value he sees forgold.
CharlesHayter, CEO and co-founder of CryptoCompare, a U.K.-based market leading cryptocurrencymarket data provider, said that he expects the crypto sector to remain volatileas the marketplace continues to evolve; however, he added that investors stillneed to look at the long-term value of the technology.
“Cryptocurrenciesare here to stay,” he said. “As the market matures we will start to see lessprice volatility. We are already seeing that some of that as the bitcoin pricesfall less and less in these corrections.”
Hayteradded that the market is also starting to evolve as the sector continues tobuild a bridge into mainstream financial markets. He added that the sector ismaking the transfer of value between people quicker and more efficient.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |