Bitcoin may be headed for further downside after losing more than 40% since mid-February. (Photo by … [+]
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Bitcoin, which is down more than 40% from mid-February, is still following a downward trend, and could suffer additional losses, according to several analysts.
The digital currency fell to as little as $6,159.58 today, according to CoinDesk data.
At this point, it had declined roughly 5% over the last 24 hours and nearly 42% from its recent high of approximately $10,600 reached on February 14th, additional CoinDesk figures show.
[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.]
The digital asset’s most recent losses were “technical in nature” as it attempted to consolidate “above $6,000,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital,
“The zone between $6,000 and $6,200 is keeping the price afloat over the last few days,” he noted.
However, DiPasquale added that “a death cross (opposite of a golden cross) formed on the charts on March 29, as the 50-day moving average fell below the 150-day moving average.”
As a result, the digital currency could easily suffer additional losses unless bullish factors bolster bitcoin’s price.
Kiana Danial, CEO of Invest Diva, offered a similar assessment, emphasizing the Ichimoku Cloud, a group of technical indicators that can be used to get a better sense of an asset’s current trend.
“On the 4-hour chart, BTC/USD has crossed below the Ichimoku cloud which is certainly a bearish signal and could take Bitcoin to the 38% and 50% Fibonacci retracement levels of $5,898 and $5,623 respectively,” she stated.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also provided a bearish take, emphasizing that bitcoin could suffer some notable losses going forward.
Unless the digital currency recovers “$7500 and $8400 in the near term,” it will retest $5,000 and then probably fall to “recent crash lows,” he predicted.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
