The Bitcoin price (BTC/USD) has dropped below the $5,000 for the first time in over a year amid a continued crypto sell-off.
After a relatively quiet weekend, the original cryptocurrency yesterday saw a continuation of the bearish trend that had caused its price to drop below $6,000 last week. The coin spent the Monday session on a downward trajectory, which eventually led to its first drop below the $5,000 mark since October 12, 2017. The digital coin finished the session at $4,871.49, well below its opening level of $5,620.78.
The digital coin has seen further losses in today’s trading. It fell to around $4,397 earlier in the session, which was is lowest level since October 7. At the time of writing, the Bitcoin price was hovering around $4,500, having experienced a slight rebound.
According to CNBC, some analysts have attributed the latest plunge to technical levels and stop orders in the market kicking in following the coin’s drop below $6,000.
“The next logical level of support is at $5,000 but if that doesn’t hold, the next logical support level isn’t until $3,500,” eToro analyst Mati Greenspan said in a client note on Monday, as quoted by CNBC. “With all the falling prices lately, this definitely fits the definition of a buyers market.”
Others have opined that the recent Bitcoin Cash hard fork that split BCH protocol in two has had a destabilising effect on the wider crypto market. In addition, the US Securities and Exchange Commission’s (SEC) ruled on Friday that two ICO start-ups, CarrierEQ and Paragon Coin, were to register their tokens as securities refund investors, pay penalties of $250,000 and file periodic reports to the SEC. According to Kyle Asman, partner and co-founder of crypto advisory firm BX3 Capital, that move “spooked a lot of people”.
In today’s trading, the Bitcoin price stood at $4,492.32, as of 09:45 GMT. The digital coin has lost 15.7% of its value in the past 24 hours.
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