After bouncing more than 20% of its low, bitcoin BTCUSD, -5.16% has surrendered close to half of the gains and was last trading at $3,961.10, down 5.4% since Thursday at 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.
What are strategists saying
Analysts at U.K.-based research firm FX Pro Insights said the selling above $4,000 is most likely short-term traders booking some profits. “The real question is: Has the crypto market indeed reached the bottom?” they wrote.
“Many market participants have decided to take an optimistic approach and BTC’s decline to $3500 was an important support point for the cryptocurrency… Within this context, it should be noted that speculators may soon begin to profit from this trend, which may trigger a new wave of sales.”
Altcoins stumble again
Altcoins, or smaller coins other than bitcoin, have started Friday with hefty losses. Ether ETHUSD, -2.70% was down 2.8% at $111.94, Litecoin LTCUSD, -5.29% has tumbled 6% at $31.11, XRP XRPUSD, -4.69% has slid 5.1% to 35 cents, and Bitcoin Cash BCHUSD, -3.74% has fallen 5% to $167.60.