Bitcoin dropped below US$7 000 for the first time since November, with the sell-off pushing the cryptocurrency to its lowest level since May.

The $6 500 level — which the coin reached at the end of November — is its next support line. Should it drop below that amount, it could tumble to $4 000, a level not seen since March, technical gauges suggest.

“There is no question that its series of lower highs/lows over the past six months has not been good,” said Matt Maley, an equity strategist at Miller Tabak & Co. “On the fundamental side of things, I do think bitcoin is viable, but it’s going to take a lot longer than most people think to gain traction.”

Cryptocurrencies have been under pressure in recent months as China take steps to crack down on the space. In June, Chinese authorities arrested multiple suspects in a pyramid scheme that promised returns as high as 600%. Last month, watchdogs in Shanghai issued notices calling for a clean-up of companies involved in cryptocurrency trading.

Although bitcoin hovered around $7 200 and $7 400 for much of December, its losses accelerated on Monday after Chainalysis, a researcher, said the coin is likely to remain under pressure as perpetrators of a $2-billion theft continue to dump coins to cash out.

Bitcoin fell as much as 5.7% to trade around $6 885 in New York. The Bloomberg Galaxy Crypto Index, which tracks some of the major cryptocurrencies, fell as much as 7.9%. — Reported by Vildana Hajric, with assistance from Kenneth Sexton, (c) 2019 Bloomberg LP