Digital currency prices fell Wednesday, throwing some cold water on the recent rally.
Bitcoin, which made a fresh three-week high above $7,100, slumped back elow the psychological $7,000 level with a single bitcoin
last changing hands at $6,959.25, down 1.7% since Tuesday at 5 p.m. Eastern Time on the Kraken crypto exchange.
After breaking higher out of the $6,000 to $7,000 range Tuesday, industry participants are looking at a key technical indicator as the next target for the worlds No. 1 digital currency. “Now we have confirmation above $7,000 and a break of the 50-day moving average we should start to see momentum build,” said Naeem Aslam, chief market analyst at Think Markets U.K.
“However, the next mark in the sand is the 200-day moving average ($7,885), which will prove stiff resistance.” Although the Wednesday afternoon slump will temper some excitement.
A moving average is a closely watched momentum indicator.
Altcoins slump, Ether can’t retake $300
Altcoins, a collective name for digital currencies other than bitcoin, have followed bitcoin lower Wednesday. Ether
the second largest digital coin, which is looking to regain $300 for the first time since August 20, has hit a speed-bump, trading down 2.8% at $285.96. It’s been a tough month for owners of Ether, despite the resurgence to start the week, the currency of the ethereum network is down 35% since the beginning of August.
After finishing more than 5% higher Tuesday, futures have drifted off their highs. The Cboe September contract
is down 2.4% at $6,950, while the CME August contract
is down 2.1% at $6,940.
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