A break below $3,000 would trigger a ‘blood bath’ for bitcoin, says analyst

Bitcoin and major cryptocurrency prices rose on Friday, looking to snap a run of two consecutive losing weeks.

On Friday, bitcoin,
BTCUSD, +1.76%
 the best-known cryptocurrency, was trading at $3,390.70, up 0.9% since Thursday’s level at 5 p.m. Eastern Time on the Kraken exchange. The cryptocurrency needs to close the week above $3,415 to prevent it from booking its third-consecutive losing week.

Read: Bitcoin hasn’t been this oversold in 4 years, chart watcher says

What are analysts saying

“For the past few weeks, we have not seen any significant movement in the bitcoin price. We are stuck in a price range of $3183 (17 December low) to $4234 (24th December high), as long as we are not breaking out of this range, there is nothing new,” wrote Naeem Aslam, chief market analyst at Think Markets UK.

However, Aslam added that a break out of the range would provide a marked change in sentiment, with the biggest risk being another leg lower. “On the flip side, the support of $3000 is really important for us and no one wants to see the price breaking below this because that will trigger a blood bath on the street.”

Read: Crypto exchange customers can’t access $190 million after CEO dies with sole password

Altcoins and futures

On Friday, altcoins — coins other than bitcoin — traded higher. Ether
ETHUSD, +4.64%
rose 3.7% to $106.95, Litecoin
LTCUSD, +13.28%
surged 13.4% to $37.21, Bitcoin Cash
BCHUSD, +4.07%
added 3.8% to $117.30 and XRP,
XRPUSD, +2.30%
was up 2.2% to 30 cents.

Futures followed spot prices higher on Friday. The Cboe Global Markets February contract
XBTG9, +1.64%
was up 1.2% at $3,390, while the CME Group February contract
BTCG9, +1.95%
added 1.4% to $3,385.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

Aaron Hankin

Aaron Hankin is a MarketWatch reporter in New York who covers cryptocurrency and financial markets.

We Want to Hear from You

Join the conversation


Quote References BTCUSD +59.52 +1.76% ETHUSD +4.79 +4.64% LTCUSD +4.36 +13.28% BCHUSD +4.60 +4.07% XRPUSD +0.01 +2.30% XBTG9 +55.00 +1.64% BTCG9 +65.00 +1.95% Show all references
MarketWatch Partner Center
Most Popular If you own Apple, Amazon, Facebook or AMD, look out below

Leave a Reply

Your email address will not be published.