Bitcoin trades back below $4,000 as selloff returns

Fibo Quantum

Any bitcoin revival is on hold as the price of the world’s best-known cryptocurrency trades back below $4,000.

After bouncing more than 20% of its low, bitcoin

BTCUSD, +0.48%

 has surrendered close to half of the gains and was last trading at $3,988.91, down 5.2% since Thursday at 5 p.m. Eastern Time on the Kraken cryptocurrency exchange. Earlier in the session bitcoin traded to an intraday low at $3,893.31.

Read: If history repeats itself, this chart will awaken bitcoin bulls

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,” FX Pro Insights analysts wrote.

Read: Bitcoin is on track to do something it hasn’t done in 4 years

Altcoins stumble again

Altcoins, or coins other than bitcoin, were on track for consecutive losing sessions. Ether

ETHUSD, -0.12%

was down 2% at $112.80, Litecoin

LTCUSD, -0.19%

has tumbled 4.8% at $31.50, XRP

XRPUSD, +0.51%

has slid 4% to 36 cents, and Bitcoin Cash

BCHUSD, -1.06%

is off 2.3% at $172.40.

Bitcoin futures traded lower on Friday. The Cboe Global Markets December contract

XBTZ8, -5.01%

ended the session down 3.8% to $3,935 while the CME Group December contract

BTCZ8, -6.71%

 fell 5.7% to $3,930.

Read: Hunker down, crypto owners, because the worst has yet to come: Fred Wilson

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