Bitcoin prices dipped below $5,800 today, falling past this price level for the second time this week and nearing its lowest since November 2017.
The digital currency reached $5,799.62 at 05:00 UTC (1:00 a.m. EST), according to the CoinDesk Bitcoin Price Index (BPI).
At this point, Bitcoin was down roughly 41.7% from the recent high of $9,954.95 reached in early May and approximately 70.7% from its all-time high of $19,783.21 attained in December, additional BPI 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 cryptocurrency has been experiencing a downward trend since early May, noted Mati Greenspan, senior market analyst for social trading platform eToro.
Scott Weatherill, chief risk manager of B2C2 Japan, also commented on the situation.
“I think it’s prudent to stay cautious while we remain within the bearish channel that has contained us since early May,” he said.
“In terms of price action we did see a glimmer of hope on the weekend when the market underwent a sharp squeeze on an uptick in volume (although volumes remain at subdued levels in absolute terms relative to the December mania),” he stated.
“Exchanges based in the US displayed a larger uptick in volume than elsewhere during that squeeze which I found interesting.”
However, Weatherill emphasized that “The follow through has been quite disappointing though and our larger OTC flows remain biased towards selling crypto.”
Both analysts expressed hope that Bitcoin might reverse its current trend, with Greenspan stating recently that the digital currency could break free of its current channel “in a few days if the price continues sideways or a few hours if it turns up from here.”
Weatherill also weighed in the situation:
“I would have to reassess my short term bearish bias” if the digital currency experienced “a break above the short term 6350-6400 pivot.”
Should this take place, “a squeeze retest of the broken multi-month wedge is on the cards which would take us to the 7000-7200 area.”
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.