CryptoWatch: Why bitcoin’s ugly rout could get worse before it gets better

A brutal, sustained rout in the world’s No. 1 cryptocurrency could accelerate, taking bitcoin to around $8,000 before it attempts to stabilize, market technicians said.

“This very much feels like a tipping point for bitcoin and if the optimism really has gone, the next leg lower could conceivably take us back to the narrow (for bitcoin) range it traded Nov. 21-24, when it was bouncing around just above $8,000,” wrote Neil Wilson, senior market analyst at ETX Capital, in a Wednesday note.

Bitcoin’s downdraft, which on Wednesday took it below $10,000, representing a roughly 50% tumble since its peak in December, has been mostly sparked by fears of a tighter regulatory regime in countries including China, South Korea and Russia, which has dulled demand for digital assets.

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