Digital currencies continue to move lower, with all major coins trading in the red early Tuesday.
Bitcoin, the worlds largest digital currency, continues to struggle for gains above $8,500, as worries over increased regulation kept a the No. 1 digital currency in check.
“The recent selloff has come from the news out of China that the ICO [initial coin offering] market is still very active and there are fears that China will further increase the strict regulation,” said Naeem Aslam, chief market analyst at Think Markets.
A single bitcoin
last changed hands at $8,225.74, down 2.2%, since Monday’s levels at 5 p.m. Eastern Time on the Kraken exchange.
Narrowing range means breakout is coming
While gains above $8,500 are hard to come by, the support around the $8,000 is holding, and as the range tightens, the probability of a breakout is growing. “The technicals are pointing to a breakout to the downside,” said Aslam. “However, my gut feeling is, and remains that the breakout will be to the topside.”
Bitcoin has spent nearly six weeks trading inside the $7,800 — $10,000 range.
Altcoins under pressure again
Altcoins, or digital coins other than bitcoin, are all in the red to begin Tuesday. Ether
which runs on the Ethereum network, is down 1.5% to $686.87, Bitcoin Cash
has lost 5.7% to $1,167.70, Litecoin
is off 1.9% at $132.67 and Ripple’s XRP coin
is down 1.5%, last trading at 67 cents.
Futures are threatening to give up Monday’s gains, opening lower Tuesday. The Cboe June contract
is off 2.3% at $8,200, while the CME May contract
is down 2.3% at $8,185.