After bitcoin’s rough week, currency strategist marks the next level to watch

Bitcoin has fallen double digits over the last week amid a slew of bad news, and one strategist said this loss of momentum could prove negative for the cryptocurrency in the near term.

Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, told CNBC's "Trading Nation" that bitcoin's decline over the last week (a loss of a little over 16 percent, according to Coinbase) may spook investors or appear as a dip to buy. But at this juncture, $10,000 per coin is the level to watch. Here are his reasons.

• Bitcoin hasn't risen above $15,000 since Tuesday, and this apparent loss of momentum may lead to a decline in sentiment.

• The $10,000 mark, at which bitcoin has not traded since November, would be a psychologically important level for the cryptocurrency, which was trading a little over $13,700 per coin on Friday afternoon.

• If bitcoin were to breach that level once again, the critical question would become whether investors would step in to buy the dip or it would lead to further liquidation.

• Earlier this week, Warren Buffett, Berkshire Hathaway chairman and CEO, said cryptocurrencies would likely "come to a bad ending." Bitcoin's price fluctuated wildly this week, too, as South Korea was said to consider a ban on cryptocurrency trading.

Bottom line: Bitcoin's price has fallen considerably since its highs late last year and could see further pain from a fundamental and technical standpoint, according to a foreign exchange strategist.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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