Bitcoin drops below $8,000 as worried traders look for another support level

Weakness in the most-traded digital coin is also dragging other major currencies down

(FILES) In this file photo taken on February 06, 2018 A picture taken on February 6, 2018 shows a person holding a visual representation of the digital crypto-currency Bitcoin, at the "Bitcoin Change" shop in the Israeli city of Tel Aviv. Bitcoin has fallen to levels not seen since June as it hit a four-month low on September 24 of 8,087.91 USD, suffering from the general climate of market uncertainty.  / AFP / JACK GUEZ
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Bitcoin fell below $8,000, (Dh29,360) heading toward its lowest close since June and dragging down most other digital coins in its wake.

The most-traded cryptocurrency slipped as much as 4.9 per cent from its Friday close and looks set to test a fresh resistance level of $7,355. It has failed for days to regain the $8,595 mark that represents a 50 per cent drop from its high of the year.

The biggest peer-to-peer currency has had short-lived rebounds in the past month as it successively fell through a support level in the $9,000s and then its 100-day moving average. Traders often look to technical analysis when there is little news to explain price movements in a market characterised by anonymous ownership and which is poorly correlated with major asset classes.

Bitcoin was down 3.4 per cent to $7,890 at 10.14am London time. Declines in rival digital coins ranged from as little as 2 per cent for EOS to 4.4 per cent for Monero. The best gainer among the most-traded cryptocurrencies was XRP, up 5.4 per cent.