Bitcoin’s Slide Reaches a Fifth Day in Longest Streak Since May
(Bloomberg) -- Bitcoin continued its slide Thursday, falling for a fifth consecutive day as it slipped below $57,000 for the first time since October, in a retreat from record highs.
The world’s largest cryptocurrency hasn’t slumped that long since the five days that ended May 16. Unlike traditional assets, crypto assets trade on the weekend, so the streak includes Saturday and Sunday.
Bitcoin was down about 4.2% to $57,614 as of 1:21 p.m. in New York. It’s slumped roughly 15% from its all-time high of $68,991 reached earlier this month.
Ether, Solana, and memecoins like Dogecoin also fell Thursday.
Strategists are citing a myriad reasons for the Bitcoin selloff this week, including regulatory crackdowns as well as its run toward records having gotten overheated. Many chartists are now looking for technical signals to see where the coin can settle next.
Bitcoin has dropped below its average prices over the last 50 days, a key level watched by chartists. Should the coin retrace 50% of its gains from its September lows, it could reach $54,500, which is the next important support level, said Matt Maley, chief market strategist for Miller Tabak + Co. However, “it will take a drop below $50,000 to raise any serious warning flags,” he said.
Meanwhile, Ether, the second-largest cryptocurrency, managed to bounce off its own such measure, though it’s down roughly 13% since Sunday. For many chart-watchers, that plunge had been expected after indicators earlier this week showed that Ether was due for a breather.
Still, both Bitcoin and Ether are up significantly this year and some measures show Bitcoin’s selloff could soon exhaust itself.
“The pullback, while sharp, has not impacted our positive intermediate-term gauges. Short-term oversold conditions are within reach for Bitcoin, Ether, and many altcoins,” said Katie Stockton, founder and managing partner of Fairlead Strategies, an independent research firm focused on technical analysis. “So we would look for their collective pullback to mature later this week.”
Stockton sees $52,900 as a support level for the coin, but also said that charts may suggest support near $58,000.
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