Bitcoin suffered further losses today, hitting a fresh, 2018 low and approaching the key $3,000 price level.
The digital currency dropped to as little as $3,122.34 at roughly 10:20 a.m. EST, according to CoinDesk bitcoin price data.
At this point, it was down 3.63% over the last 24 hours, trading at its lowest point since late last year.
Further, bitcoin only needed to lose another $125, or in this case, roughly 3.9% of its value, to hit $3,000, a price level that has drawn attention from technical analysts.
[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.]
Key Support At $3,000
The $3,000 price is crucial, as it represents bitcoin’s “current level of support,” said Mati Greenspan, senior market analyst for social trading platform eToro.
“This level acted as a strong resistance during the bull run of 2017 and it took about two months to break it back then,” he added.
Whether this price will hold up remains to be seen, as bitcoin has been stuck in a bearish trend for roughly the last year.
In this time, the world’s largest digital currency by market value has fallen roughly 84% since hitting an all-time high of close to $20,000.
Bitcoin’s recent bloodletting is simply the latest consequence of this bearish trend, said Tim Enneking, managing director of Digital Capital Management.
Natalia Karayaneva, CEO of real estate startup Propy, offered further input on the weakness that cryptocurrency prices have been suffering.
Billions of dollars’ worth of investor funds have flowed into “new blockchain startups and protocols,” she noted.
“At the end of the year, entrepreneurs need to pay taxes and plan 2019. This crypto sell-off drove the panic further.”
“Even though crypto entrepreneurs are the driving horse and believers in bitcoin, they still have to cover expenses.”
A Dream Of Spring
However, Karayaneva does see the situation improving in 2019.
“Next year, once some dapps, protocols, and security tokens take off, we will see the demand for bitcoin and other tokens’ to recover.”
Disclosure: I own some bitcoin, bitcoin cash and ether.