Bitcoin slumped to its lowest price in more than two months Wednesday, dipping below $10,000.
The cryptocurrency fell to $9,627 before rallying to $10,200, with analysts predicting a steady fall until it hits the $8,000 mark.
Since November, Bitcoin’s price has been a maelstrom of activity.
It reached an all-time high of $20,000 on December 16, however uncertainty surrounding regulatory oversight in South Korea and China prompted a massive sell-off.
The most recent price drop is part of a pullback that Mati Greenspan, market analyst with eToro, says will likely see the value continue to fall.
“This is just another leg down in the overall pullback, this has been my view since the beginning of the year,” Greenspan told VICE News. “The support is at $8,000.”
Greenspan’s analysis is based on three different levels converging at $8,000 — the rising trend line, the 200-day moving average and the breakout level.
“When bitcoin broke above $8,000, there was a lot of FOMO [fear of missing out] in the market, and we have seen bitcoin many times reach this technical pattern, where there is a breakout at a specific level and a pullback should bring us just below that breakout point,” Greenspan said.
The bitcoin dip is part of a wider market sell-off with just five of the 50 most valuable cryptocurrencies showing gains in the last 24 hours, according to data from CoinMarketCap.com.
While no single event impacted the price of bitcoin in the last 24 hours, there has been a number of important developments in the industry:
- Facebook bans bitcoin ads — The social network said it will impose a blanket ban on all ads for cryptocurrencies, including bitcoin and ICOs. The company says it wants to stop people promoting “financial products and services frequently associated with misleading or deceptive promotional practices.”
- Bitfinex and Tether being investigated — The controversial dollar-pegged cryptocurrency Tether and associated exchange Bitfinex have been subpoenaed by the US Commodity Futures Trading Commission (CFTC). Skeptics have for months raised concerns about Tether, and its lack of currency reserves. Some analysts suggest tether is a “ticking time bomb” that could cause the price of bitcoin to collapse.
- South Korea has no plans to ban crypto trading — Contrary to speculation, South Korea is not about to ban the trading of cryptocurrencies, the government’s finance minister said Wednesday. This will be welcome news for investors who feared Seoul could follow China’s lead and ban trading completely.
Cover image: A visual representation of digital cryptocurrencies. Ripple, Bitcoin, Etherium and Litecoin are displayed on January 30, 2018 in Paris, France. (Chesnot/Getty Images)