Cryptos: Bitcoins Struggle Below $4,000 Puts Devastating Dent In The Bull Case, Says Analyst

Bitcoin rose modestly Thursday, looking to book a three-day win streak for the first time since mid-February.

In early afternoon action, a single bitcoin BTCUSD, +0.62%  fetched $3,864.60, up 0.5% versus its level at 5 p.m. Eastern Wednesday on the Kraken crypto exchange. The cryptocurrency has gained more than 4.5% over the past three trading sessions.

Read: Accepting bitcoin could create a grande headache at Starbucks

What are analysts saying

Despite a mini-recovery this week, markets analyst Jani Ziedins of the Cracked Market blog noted as bitcoin continues to struggle below $4,000, the case for a bull run is fading.

“Bitcoin continues to hover underneath $4k resistance. It wasn’t all that long ago we were talking about $9k support, then $8k and $7k. $6k and $5k followed not long after. Now $4k turned from a floor into a ceiling,” he wrote.

“Adoption of cryptocurrency for handling financial transactions is slowing, not accelerating, which puts a devastating dent in the bull case. If BTC turns out to be nothing more than a fad, then the $4k price tag is still incredibly expensive and there is still lots of room to fall,” Ziedins said.

Altcoins and futures

Smaller digital currencies, or altcoins, are mixed in early Thursday trade. Ether, ETHUSD, +0.62%  the coin of the ethereum network, was up 0.3% to $136.78, Litecoin LTCUSD, +3.48% added 2.5% to $56.28, Bitcoin Cash BCHUSD, -0.08% fell less than 0.1% to $130.10 and XRP XRPUSD, -0.94% was down 0.8% at 31 cents.

Bitcoin futures ended higher on Thursday. The Cboe Global Markets March contract XBTJ9, +0.65%  closed up 0.8% at $3,865, while the CME Group March contract BTCH9, +0.65%  added 0.7% to $3,865.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

RECENT NEWS

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more

Gyrostat February Outlook: Stewardship As Risk Reprices

This monthly outlook examines how financial markets are pricing risk, rather than attempting to forecast ... Read more

Gyrostat Capital Management: Why Risk Management Is Not About Predicting Risk

Why Risk Management is Not About Predicting Risk Financial markets reward confidence, but they punish certai... Read more

Gyrostat January Outlook: Calm At Multiyear Extremes

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. Its p... Read more