By Syndication Washington Post, Bloomberg · Vildana Hajric · BUSINESS, TECHNOLOGY
The largest cryptocurrency was down 7.5% to $5,026 as of 12:45 p.m. in New York, after dropping as low as $4,442, according to Bloomberg data. It has slumped about 55% from the $10,500 high for the year set Feb. 13. Other alt coins tumbled, with Ether down about 12% and Litecoin off more than 8% on Monday.
Monday's rout extends the recent crypto sell-off into a second week and comes as stock gauges globally plunge into bear markets amid the coronavirus crisis. The outbreak has spread to more than 3,000 Americans and has ground activity in Europe to a virtual standstill.
"Despite the massive sell-off, bitcoin's price has still failed to attract investors. This is because the price is likely to drop even more," said Naeem Aslam, chief market analyst at AvaTrade. "For me, anything below $3,500 is very attractive. It is likely that the price may drop to that level."
Technical gauges suggests that bitcoin appears primed to retest the recent lows of $4,000. If that level is broken, a retest of late 2018 and early 2019 lows is seen possible.
One technical indicator, the GTI Global Strength Indicator, is already in oversold territory, having fallen below the 30 threshold that signifies that condition. However, it is still above the level marked during 2018 and 2019 lows, indicating there may be more pain to come.