Bitcoin is continuing to slide in Asian trade after prices fell by another 6% overnight. A short time ago, prices had slumped below $US9000 - a fall of more than 20% from levels above $US11,500 earlier this week.
It's been a rough couple of days for the crypto sector, amid more stern warnings issued by the US Securities & Exchange Commission while reports emerged that large Japanese crypto exchange Binance had been hacked.
In addition, Bitcoin traders are reportedly upset that the bankruptcy trustees of crypto exchange Mt Gox have been selling large bitcoin positions as part of liquidation proceedings, driving down prices and distorting the market.
On a technical basis, Daily FX senior strategist Ilya Spivak said the $US8,465 level now represents key support.
"If that gets broken on a daily closing basis, I’d be looking for a retest of $US6,000, followed by the February 6 low at $US5,873," Spivak said.
"Prices would need to break back above the February 20 high at $US11,775 for the near-term bearish bias to be negated."
As usual, the Bitcoin selloff has extended to other major cryptocurrencies, with prices under pressure across the board:
The salad days of cryptocurrency are fading fast. Yesterday, the price of bitcoin fell below $6000. Some are predicting it could dip through $3000 in the months ahead. This is a far cry from December 2017, when a single bitcoin hovered around $25,000 in value.
During this week's crypto bloodbath, it might be tempting to poke fun at colleagues who invested heavily in bitcoin and wouldn't shut up about the huge profits they were making. Instead, try showing a little empathy.