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Bitcoin slumps below $8,000 — and the worst is yet to come says one analyst


Cryptocurrency prices are under pressure for the third day running with all major coins showing significant losses early Wednesday.

Bitcoin, the world’s biggest digital currency, fell through $8,000 late Tuesday, taking the total value of all cryptocurrencies below $350 billion for the first time since April 19.

The trend has continued into Wednesday with bitcoin

BTCUSD, -2.61%

reaching a six-week low of $7,807.60. A single bitcoin was last worth $7,849.49, down 3.2% since Tuesday’s levels at 5 p.m. Eastern Time on the Kraken exchange.

Read: Crypto crackdown: New Jersey orders 3 firms to stop offering unregistered securities

It’s just a trend, and the trend is lower

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.

“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 morning blog post.

“It takes most bubbles between 6 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.”

Read: Opinion: This is all it would take for bitcoin to become a worthless cryptocurrency

Altcoins shattered

Altcoins, or digital currencies other than bitcoin, are showing hefty losses early Wednesday. Ether

ETHUSD, -5.82%

has lost 5.9% to $616.85, Litecoin

LTCUSD, -4.16%

 is down 4.8% at $123.59 and Ripple’s XRP coin

XRPUSD, -5.83%

is down 6.8%, last trading at 61 cents.

Bitcoin Cash

BCHUSD, -7.15%

is the biggest loser, currently down 9.7% to $1,035.10, and has fallen as much as 20% over the last 48 hours. At this rate Bitcoin Cash, which had risen more than 100% in April, is on track for its third consecutive weekly loss.

Futures have tracked spot lower so far Wednesday. The Cboe June contract

XBTM8, -3.60%

 is down 4.1% at $7,850, while the CME May contract

BTCK8, -3.85%

is off 4% at $7,850.

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