Investing.com – Bitcoin's tumble continued Wednesday as the popular crypto neared a crucial test of its four-month low amid ongoing selling pressure.
Bitcoin fell 4.51% to $6,240 on the Bitfinex exchange, but had traded as low as $6,107.9 just above its more than four-month low of $6,000 seen in February.
Some crypto observers said that bitcoin's fall to near $6,000 would prove a crucial test of investor appetite for the crypto, warning that a plunge beyond this price level could turn ugly, sending bitcoin sharply lower.
"We keep going down, and we’re testing new lows. Sixty-two-fifty is the next point. If it goes under that, we’re going to test 5,900," Ran Neu-Ner, host of CNBC Africa’s Crypto Trader told CNBC on Tuesday.
Demand for cryptocurrencies including bitcoin is fading quickly as the sharp downturns trigger fresh waves selling of pressure, wiping billions from the crypto market. With no new inflows, cryptos could struggle to regain upward momentum.
The total market cap of cryptocurrencies fell to about $268 billion, at the time of writing, from $282 billion on Tuesday.
Other large-cap cryptos followed bitcoin's sharp move lower.
Ripple XRP fell 6.37% to $0.51811 on the Poloniex exchange, while Ethereum fell 3.66% to $471.09
Bitcoin Cash fell 4.64% to $827.16, while Litecoin fell 7.16% to $92.21.