The worst is still to come, says bitcoin analyst


Cryptocurrency prices were in recovery mode in early Thursday trade, with all major coins clawing back recent losses. However, the current state of play could be the calm before the storm, according to one crypto analyst.

Bitcoin

BTCUSD, +2.33%

the worlds No. 1 digital currency, has remained resilient in the face of the altcoin slump, not surrendering the key support at $6,000. A single bitcoin was last worth $6,429.83, up 1.9% since Wednesday at 5 p.m. Eastern Time on the Kraken exchange.

Still, the change in fortunes for digital-asset owners could be short-lived, says Jani Ziedins of CrackedMarket. “Bitcoin keeps slipping and is barely holding $6k support. Last week’s rebound to $7.4k is dead and gave us another lower-high since we failed to match the previous $8.4k bounce. Lower-highs tells us the next lower-low is just around the corner,” he wrote in a recent blog post., noting that the limited magnitude of the bounces and suggesting that a breach of critical support prices could be imminent.

“The trend is most definitely lower. but each bounce is still a selling opportunity. The worst is still ahead of us,” Ziedins wrote.

Read: Opinion: Your crypto ‘stable coin’ isn’t tethered to anything

Ether claws back 5%

Ether

ETHUSD, +8.62%

which had lost almost 90% of its value from top-to-bottom has found some much-needed demand Thursday, trading higher by 5.8% to $192.57. It has been a torrid period for the second-largest digital currency, which had recorded eight losing sessions in the previous 10 before Thursday.

Read: Traders are making record bets for digital currency Ether to fall

Other major altcoins are tracking higher Thursday as well. Bitcoin Cash

BCHUSD, +4.12%

was up 3.2% to $440.70, Litecoin

LTCUSD, +3.98%

was up 3.6% at $53.57 and Ripple’s XRP coin

XRPUSD, +2.45%

was last at 27 cents, up 1.5%.

Bitcoin futures are trending higher with spot prices. The Cboe Global Markets Group Inc.’s September contract

XBTU8, +2.31%

is up 2.2% at $6,425, and the comparable CME Group Inc. September contract

BTCU8, +2.31%

is at $6,440, up 2.4%.

Read: Bitcoin is flirting with a new low for the year after the SEC stopped trading on 2 funds

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