Bitcoin, the world’s biggest digital currency, fell through $8,000 late Tuesday and the slide has not abated. Bitcoin tumbled to a multiweek low of $7,442.92. Bounces have been limited, with a single coin last worth $7,528.89, down 7.1% from late Tuesday Eastern U.S. levels on the Kraken exchange.
The collapse in cryptocurrencies has seen the total value of all coins fall to $326 billion, down some $50 billion in just 72 hours, according to Coinmarketcap.
Bitcoin bull Tom Lee of Fundstart Global Advisors is holding firm, telling CNBC that institutional investors are just waiting for clarification of regulation before dipping their toes in the water.
Bitcoin enthusiasts looking for the next support line might be better off tracking current resistance levels, according to one analyst, who says we are still in a trend, and it’s not higher, as MarketWatch reports.
“Last week’s $9k support has turned into this week’s $8k support. And thus far it is giving every indication that $7k will become next week’s support. I hope you see the trend here,” wrote Jani Ziedins in a blog post.
“It takes most bubbles between six and 24 months to finish bursting. If bitcoin is like most bubbles, that means the worst is still ahead of us and we should expect lower lows over the next few months.”