Bitcoin prices have been encountering some turbulence lately, repeatedly falling below $8,000 in the last 24 hours and reaching their lowest level since mid-April.
The price of Bitcon fell to as little as $7,931.43 this morning on the CoinDesk Bitcoin Price Index (BPI).
This represented the digital currency’s lowest value since April 18, additional BPI figures show.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin Builds Support
While the world’s largest digital currency has dropped below $8,000 many times lately, it has always bounced back.
This resilience illustrates that Bitcoin has built up significant support near that price level, said analysts.
There is “lots of support at those levels,” said Iqbal Gandham, U.K. managing director for social trading platform eToro.
Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, offered similar input, stating that Bitcoin has built up good support at $8,000.
One analyst offered a more conservative point of view.
Mati Greenspan, senior market analyst for eToro, provided the digital currency’s long-term trendline, illustrating where Bitcoin is building support.
After performing this technical analysis, he concluded that Bitcoin’s strongest support is around the $7,100 level.
‘Any Price Level Can Be Broken’
In spite of this analyst consensus that the digital currency has been building up strength at the aforementioned price levels, one market observer seemed more skeptical.
“There might be some support at $8000 but any price level can be broken,” said cryptocurrency investor Marius Rupsys.
As a result, he advocated a cautious approach.
“I would sit on sidelines to see where price goes next,” said Rupsys.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.