Crypto markets continued a second day of slide on Friday as bitcoin hovered above pivotal support at $40,000 in European hours, data show.
Bitcoin bounced to $40,100 early Friday, after losing 2.9% Thursday.
Bitcoin is trading near the $40,000 support level, which runs through the lows of the first three months of the year. Current price action is, however, a sign of alarm among some traders.
“A formal signal to break the support will be considered a failure under the previous lows in the $38,000 area,” Alex Kuptsikevich, senior financial analyst at FxPro, wrote in an email to CoinDesk. “The ability to develop a reversal to the offensive from these levels, on the contrary, will reinforce the importance of this moderate uptrend line.”