Bitcoin hits a wall above $11k, downward trend remains in tact

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It had been a good 48-hours for cryptocurrencies with the majority of the main digital currencies posting solid gains to start the week. However, an early morning slide has put a dampener on cryptocurrency investors.

After extending gains early Wednesday, the No. 1 cryptocurrency, bitcoin

BTCUSD, -0.12%

 once again found heavy resistance above $11,000. After reaching an intraday high of $11,044.16, bitcoin slumped, falling 6% from its high to trading at $10,522.56, down 0.4% on the day.

“While we can buy this rebound for a quick trade, this is most definitely not a good place to invest in BTC for the long-term. These rallies are to be sold, not held or chased. Lower-lows are still ahead of us and we haven’t seen the worst of this selloff yet,” Jani Ziedins of Cracked.Market said Wednesday morning.

Despite the sharp reversal, the price of bitcoin remains in the short-term range of $9,000 – $11,000 and this mornings pullback is just par for the course for some.

“Nothing specific, just the usual volatility,” Charles Hayter, co-founder of CryptoCompare said of this mornings decline. “I think we are looking for more clarity from regulators and we are starting to see it. We just have to get by the Uranium and Venezuelan petro situation.”

Elsewhere, cloud-based messaging app Telegram, which has raised $850 million in its first round of ICO funding, is said to have tripled the price of its virtual coin to $1.33 each, Bloomberg reporter. The company, founded by Pavel Durov, is hoping to raise as much as $2.5 billion for the ICO.

Other cryptocurrency prices followed bitcoin lower Wednesday. Ether was last down 1.1% at $869.70, bitcoin cash is in the red by 1.8% at $1,225.48, Litecoin is down 3.7% at $208.47 and Ripple was last traded at $0.92, down 2.7%.

Futures markets are in the red Wednesday. The Cboe Global Market’s March contract

XBTH8, -1.17%

is down 1.6% at $10,500 and the CME March contract

BTCH8, -0.98%

is down 1.5% at $10,505.

In other news, embattled biotech-turned-blockchain company Riot Blockchain

RIOT, +6.22%

 announced Rob Chang as its new Chief Financial Officer. Chang was formally Head of Metals & Mining at Cantor Fitzgerald.

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