Bitcoin Could Suffer More Losses After Breaching Key Support

Bitcoin fell below crucial support today, a move that could trigger additional downside and also threaten the bullish momentum the digital currency has enjoyed in recent weeks. The cryptocurrency dropped to as little as $8,290.24 around 8:45 a.m. EST, CoinDesk data shows. At this point, the digital asset had fallen roughly 3.6% in less than six hours, declining from its intra-day high of $8,597.33, additional CoinDesk figures reveal.

Multiple analysts cited profit taking when explaining this downward move. “The current decline can be attributed to rejection in the resistance zone between $8750 and $9100, following which profit taking made sense for traders and investors,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.

“Falling under $8500 puts additional pressure on Bitcoin’s price,” he noted. However, “there is strong support between $8000 and $8200, and we can expect the price decline to take a breather at $8200.”

While the cryptocurrency might face additional losses in the short-term, Tim Enneking, managing director of Digital Capital Management, said that in the long-term, he is looking for the digital asset to bounce back. Going forward, bitcoin’s price could benefit from the ongoing maturation of the digital currency industry, as market infrastructure continues to improve and the regulatory environment keeps evolving.

“We are continuing to see the operational infrastructure of the industry evolve positively for digital assets,” said Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare.