Bitcoin investors may still have more pain ahead, according to Wolfe Research. The flagship cryptocurrency is now about 21% below its all-time high after a broad risk-off move this week pushed it under $90,000 for the first time since November. Now it's at a critical juncture: if it fails to retake $90,000, it could pull as far back as $70,000, the researcher said. "We could be in for a return to the mid to low $70,000 range," Wolfe analyst Read Harvey said in a note Wednesday. "$91,000 acted as the floor over the past several months. With that level now decisively taken out, anything less than another V-shaped oversold response would send a very bearish message. So far not so good." "If the air continues to leak out and bullish sentiment further dissipates, expect price to round trip back to where it was prior to its post-election breakout," he added. BTC.CM= 5D mountain Bitcoin fell to a 3-month low this week Absent a clear catalyst – following the election of pro-crypto President Donald Trump, his inauguration and his widely-anticipated and well-received executive order on crypto – bitcoin has been taken down by recent sell pressure in equities driven by concern about a slowing economy. While optimism about the long-term positive impact Trump's policies could have for crypto remains high, bitcoin may continue to suffer from major risk off moves until a new catalyst emerges, some analysts are saying. "It's clear that tides are shifting, not just within global equity markets but within the likes of commodities and crypto as well," Harvey said. "Uncertainty is at the forefront of investors' concerns and the willingness to take on risk is rapidly waning." Bitcoin is down 8% this year, but is still up 23% since the election. —CNBC's Michael Bloom contributed reporting.
