Bitcoin reached a six-week low today, declining below $3,400 as the broader cryptocurrency market suffered widespread losses.
The world’s largest digital currency by market capitalization (market cap) dropped to $3,374.46 at roughly 10:40 a.m. EST, according to CoinDesk Bitcoin price data. This was the lowest value since December 17.
At the time of this report, 9 of the top 10 cryptocurrencies by market cap were in the red on CoinMarketCap, having suffered declines over the last 24 hours.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
As for whether Bitcoin‘s recent downward movement simply amounted to standard volatility or pointed toward something more substantial, analysts offered mixed views.
Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, described the price fluctuations as simply being the “usual gyrations of the market trading within a range.”
Mati Greenspan, senior market analyst for social trading platform eToro, offered a similar perspective, stating that:
“There’s no need for overreaction here. Bitcoin is continuing to trade within the core area of support between $3,000 and $3,500, within the broader range of $3,000 – $5,000, where it’s been since November 2018.”
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, described the price movements as “too minor to be a result of any fundamental development,” adding that they were “within the established range of $3,000 to $3,500.”
However, Jon Pearlstone, publisher of the newsletter CryptoPatterns, offered a different point of view, noting that Bitcoin could face further volatility soon enough.
Should the digital currency enjoy a “strong recovery” today, that development could prove quite bullish for Bitcoin.
On the other hand, “If price is breaking down from the recent trading range, we’d expect a fast move down to [retest] the next solid support level which is the $3000 range lows of 2018,” added Pearlstone.
“If $3000 does not hold, that breaks a key technical support level from 2017 and much lower prices come into play.”
“Another indicator worth noting” “is the strong bearish move across the broader crypto market with most large altcoins at or below key support levels,” added Pearlstone.