Bitcoin fell to less than $8,900 today, declining after the digital currency encountered powerful resistance at the $10,000 level.
The cryptocurrency dropped to as little as $8,888.84 this afternoon, CoinDesk data showed.
At this point, the digital asset was down more than 10% from the recent high of $9,933.98 it reached on May 17th, additional CoinDesk figures revealed.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining this latest drop, analyst Marouane Garçon pointed to bitcoin’s recent push toward $10,000, followed by the “strong rejection” the cryptocurrency encountered at that level.
“The market just doesn’t believe it’s worth that much,” said Garçon, managing director of crypto-to-crypto derivatives platform Amulet.
“Bitcoin has been battling with the $10,000 for quite some time,” he added.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered a similar perspective, stating that “bitcoin had struggled to cross $10,000 throughout this month.”
This situation added to “downward pressure which was exacerbated by news of Satoshi-era Bitcoins moving from a wallet yesterday, raising fears of a possible sell-off,” he stated.
Going forward, analysts weighed in on the key areas of resistance and support that bitcoin could encounter.
“The next support levels can be expected around $8,700, followed by $8,200,” said DiPasquale.
Kiana Danial, CEO of Invest Diva, also weighed in, stating that:
“If Bitcoin breaks below $8,800, we could expect more pullbacks towards the 23% and 38% Fibonacci retracement levels of $7,746 and $7,074, respectively.”
“On the bright side, once this pullback is over, Bitcoin bulls could regain energy to potentially break through the $10,000 resistance and bring the price back towards $14,000,” she added, identifying this as one of the key resistance levels after $10,000.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.