Bitcoin fell below $ 30,000, breaking below a trading range that had been holding for the past four weeks and potentially setting the largest cryptocurrency for deeper price drops.
The cryptocurrency was trading around $ 29,998 at press time and is down about 5% over the past week.
Bitcoin has been locked in the wide $ 30,000 to $ 40,000 price range since middle of May and briefly broke below the $ 30,000 mark in June 22nd. The cryptocurrency briefly traded at $ 29,700 a day after the People’s Bank of China. organized the country’s main financial institutions to stop facilitating crypto transactions
“I expect a sharp drop towards $ 22K,” Patrick Heusser, head of operations at Crypto Finance AG, said in a telegram interview on Monday.
Wall Street is seeing “too much foam” and the nervousness of the current virus is causing a widespread panic sale of all high-yielding assets, with bitcoin being at the top of this list, according to Edward Moya, Oanda’s senior market analyst.
Moya said that Bitcoin could be vulnerable to a sudden drop towards the $ 20,000 level that “should attract a lot of institutional buyers who have been waiting patiently on the sidelines.”
“If the stock market sell-off intensifies, bitcoin and Ethereum will easily extend their declines,” Moya said.
Katie Stockton, founder and managing partner at Fairlead Strategies, said that the consolidation phase that Bitcoin is currently undergoing is “neutral.”
But in his opinion, he said, “a breakup is more likely than a breakup.”
In April, the bitcoin network was “so vibrant that it was not difficult to support prices above $ 50,000,” said Charles Morris, founder of ByteTree Asset Management.
However, in recent weeks, Morris said the level of network activity has collapsed.
“Now it’s more in line with a bitcoin price of $ 15,000 than a price of $ 50,000,” he said.
Bitcoin peaked just below $ 65,000 in mid-April.