Bitcoin Prices Continue To Decline, Hitting Fresh 2018 Low

&l;p&g;&l;img class=&q;dam-image shutterstock size-large wp-image-1113193196&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1113193196/960×0.jpg?fit=scale&q; data-height=&q;576&q; data-width=&q;960&q;&g;&l;span&g;Bitcoin prices dropped today, hitting their lowest point this year.&a;nbsp;&l;/span&g;Shutterstock

Bitcoin prices continued to&a;nbsp;decline today, falling below $5,800 and&a;nbsp;reaching&a;nbsp;a new low for the year.

The digital currency&a;nbsp;dropped to as little as&a;nbsp;$5,785.43 by 16:00 UTC (12:00 p.m. EST), according to the CoinDesk &l;a href=&q;https://www.coindesk.com/price/&q; target=&q;_blank&q;&g;Bitcoin Price Index&l;/a&g; (BPI).

At this point, Bitcoin was down roughly 5.3% over the last 24 hours and was trading at its lowest since November 2017, additional BPI figures show.

In addition, the cryptocurrency had plunged more than 70% from the all-time high of&a;nbsp;$19,783.21 it reached in December.

Later on, Bitcoin prices recovered, trading at&a;nbsp;&l;span&g;$6,162.03 a&l;/span&g;t the time of this writing.

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&l;strong&g;A Bearish Trend&l;/strong&g;

Bitcoin has been suffering a gradual, downward trend for the last several months, losing roughly&a;nbsp;more than two-thirds of its value since hitting an all-time high late last year.

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Several analysts have spoken to this trend, including Marius Rupsys, a digital currency investor.

&q;Statistically Bitcoin has been in bear market for a while,&q; stated Rupsys.

As the digital currency&s;s price continues to fall, other indicators of market activity remain lackluster, noted&a;nbsp;Scott Weatherill, chief risk manager of&a;nbsp;&l;a href=&q;https://www.b2c2.com/&q; target=&q;_blank&q;&g;B2C2 Japan&l;/a&g;.

&q;Exchange volumes continue to languish and Google search trend statistics show that search volumes for &s;bitcoin&s; sit at just 10% of the heights witnessed at the peak of the mania in December,&q; he stated.

&l;strong&g;Potential Rally&l;/strong&g;

In spite of these bearish signals, Bitcoin could be heading toward a&a;nbsp;rally soon, said&a;nbsp;&l;span&g;Jon Pearlstone, publisher of the newsletter&a;nbsp;&l;/span&g;&l;a href=&q;https://cryptopatterns.wordpress.com/&q; target=&q;_blank&q; rel=&q;nofollow noopener noreferrer&q; target=&q;_blank&q;&g;Cryptopatterns&l;/a&g;.

Bitcoin is heading towards $5,000,&a;nbsp;&q;and that is still the most likely path,&q; he stated.

However,&a;nbsp;the digital currency&s;s trading volume has risen a little today, and the price has recovered from its recent lows,&a;nbsp;said Pearlstone.

&q;Add this buying to multiple technical indicators showing bullish divergence and it could mean a bounce is coming that could turn into a &s;relief rally&s; with a target of $7250.&q;

&q;Getting above the key price level of BTC $6450 is the confirmation level for the short term bullish path we&s;re watching.&q;

&l;span&g;Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.&l;/span&g;&l;/p&g;

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