Bitcoin prices are trading lower for a second day running, putting a lid on the recent euphoria that had some pundits eyeing $8,000 and beyond.
In early Thursday trading, one bitcoin BTCUSD, -2.34% was last worth $6,872.14, down 2.4% since Wednesday at 5 p.m. on the Kraken crypto exchange.
After two winning sessions to begin the week, the No. 1 digital currency has erased nearly 3% from Wednesday’s highs, confirming that those shorting the cryptocurrency, or betting that it will decline, are still in control.
“Bitcoin is still holding the upper end of the range,” said Lennon Sweeting, director of institutional trading at Coinsuqare Capital. “A lot of what we saw [over the last two days] was short covering, but at the end of the day, shorts are still at elevated levels and we haven’t seen the bear market turn yet.”
Sweeting added that $6,500 should provide some solid support.
The cryptocurrency is up more than 2% for the week.