The cryptocurrency market continues to suffer losses on Friday, with Bitcoin is down almost 4% on the day. The coin failed to keep above the key $9,000 threshold and slipped to April 26 lows at $8,676. Should this level give up, we may see a decline towards $8,400 and then to the $8,000 area.
Apart from the technical signals, which are getting more bearish after a break below $9,000 and the 100-DMA, there are some other drivers behind the continued correction from highs close to the $10,000 barrier. Some negative pressure came from Nvidia, as the tech firm predicted a big drop-off in cryptocurrency mining demand in the second quarter of 2018. Another source of the increased selling pressure was the news that Mt. Gox trustees have moved another $80 million of digital currency into cold storage.
While the current retreat in the BTCUSD pair is rather painful for short-term traders who may continue to take profit in the nearest future, long-term holders of the digital currency still have nothing to worry about, as the price will likely rise again and challenge the December highs around $20,000 in a wider horizon.
By Helen Rush
Senior Analyst at Capital Markets