Bitcoin slumps 5% to lowest level since February

This break below $6,450 confirms bitcoin’s downtrend, according to one Fundstrat analyst.

“The declines over the past few days [have] done significant technical damage to most crypto currency charts,” Robert Sluymer, managing director and technical analyst at Fundstrat Global Advisors said in a note to clients Wednesday. “Breaking below the April lows confirms a longer-term downtrend for BTC by establishing the first lower since the uptrend began in 2015.”

The next support level is near $5,500, Sluymer said. If the current correction, which he said is a “big IF,” matched the 2014 bear market, bitcoin could see an additional 50 percent drop to the next support level of $3,200.

Despite precipitous declines in 2018, the cryptocurrency has still tripled in value since last summer.

“Bitcoin’s decline this year appears to be gathering steam, but it’s important to note that the spot price is still up over 140% from this date 12 months ago,” said Joe DiPasquale, CEO of BitBull Capital. “When compared against the meteoric 1400% increase seen overall in 2017, the gain isn’t quite as dramatic but still outperforming many other asset classes.”

DiPasquale’s research indicates a bottom around $5,000 is possible before any recovery for bitcoin.

Other cryptocurrencies fell alongside bitcoin Wednesday. Ethereum, XRP and litecoin all dropped 7 percent, while bitcoin cash was down 5 percent.

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