A bitcoin logo is seen at a facility of the Youth and Sports Ministry in Caracas, Venezuela February 23, 2018. REUTERS/Marco Bello
NEW YORK (Reuters) – Bitcoin fell to a more than one-year low on Wednesday, falling below a key support level of $6,000, with traders and analysts unclear on what caused the sudden drop in price.
“The market had been entering a wedge, with the volatility so low,” said Charlie Hayter, founder of industry website Cryptocompare in London, referring a technical chart pattern.
“What you are seeing low is a breakout on the downside. Sometimes when things happen, it takes a while for the true reason to become clear – an exchange trade or regulatory action.”
Bitcoin fell to as low as $5,534 BTC=BTSP. The $6,000 level was a key support level for bitcoin for some time. It was last down 11 percent at $5,571.61.
Reporting by Gertrude Chavez-Dreyfuss in New York and Tom Wilson in London; Editing by Chizu Nomiyama