Bitcoin stumbles, dips back below $7000

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

BTCUSD, -0.02%

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.

Read: Survey finds a surprising barrier to blockchain adoption

Altcoins slump, Ether can’t retake $300

Altcoins, a collective name for digital currencies other than bitcoin, have followed bitcoin lower Wednesday. Ether

ETHUSD, +0.00%

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.

Elsewhere, Bitcoin Cash

BCHUSD, -0.14%

was down 3.3% at $548.90, Litecoin

LTCUSD, -0.19%

is off 3.4% at $60.68, and Ripple’s XRP coin

XRPUSD, -0.09%

was trading at 34 cents, down 2.8%.

After finishing more than 5% higher Tuesday, futures have drifted off their highs. The Cboe September contract

XBTU8, -1.23%

is down 2.4% at $6,950, while the CME August contract

BTCQ8, -0.78%

is down 2.1% at $6,940.