Getty Images
Cryptocurrency prices gave up some gains Wednesday with the No. 1 digital currency drifting back below $7,000 as bullish traders hold their breath.
The swings in crypto prices over the past week have been indicative of the wider market, marked by listless, directionless trade.
“The market remains topsy-turvy and people aren’t sure what lies ahead,” said Charles Hayter, co-founder of CryptoCompare.
“Last year we went from irrational exuberance where people were riding the trend higher, to a shift lower this year. Essentially we have gone from higher highs to lower lows.”
Adding to the slide was concerns from US-based cryptocurrency exchange with funding. Exchange failures continue to weigh on the market validity debate.
We are currently experiencing issues across all funding methods. Please expect crypto and fiat deposits to be delayed until we identify and resolve the issue.
— Kraken Support (@krakensupport) April 4, 2018
Bitcoin BTCUSD, -8.08% last changed hands at $6,876.19, down 7.3% on the day.
Read: Why is blockchain-of-choice Ethereum underperforming crypto rivals?
Real bounce won’t occur until bitcoin hits $4k
The debate remains whether the failure at the death-cross, where the 50-day moving average crossed below the 200-day, was a medium-term low. But one analyst says it was just a function of the”grossly oversold levels” and not a shift in sentiment.
“Expect prices to undercut February's lows over the next few weeks and that violation to trigger a large wave of defensive selling,” said Jani Ziedins of Cracked Market in a Tuesday blog.
“Don’t expect prices to bounce until we fall into the $4k range. Then and only then will it be safe to buy the bounce.”
Alt-coins and futures
The decline in bitcoin has weighed on the digital-currency complex. After pushing above $400 yesterday, Ether has fallen back to $377.53, Bitcoin cash is off 8.1% at $654.65, Litecoin last traded at $118.34, down 11.9% and Ripple is at 50 cents.
Futures markets have tumbled midmorning. The Cboe’s April contract XBTJ8, -9.42% is off 8% at $6,890 and the CME Group Inc. April contract BTCJ8, -9.25% is lower by 9% at $6,785.
CryptoWatch: Check bitcoin and other cryptocurrency prices, performance and market capitalization—all on one dashboard