Bitcoin is down more than 50% from its mid-April high of nearly $ 65,000. The coin started in 2021 at around $ 29,000 after quadrupling in 2020.
Such exchanges indicate “Bitcoin traders could find themselves in rough waters for weeks on end,” said Sean Rooney, head of research at crypto asset manager Valkyrie Investments.
Chart watchers said Bitcoin, which did not stay above $ 40,000 last week, may struggle to find support in the $ 20,000 range after falling below $ 30,000 . Yet before Tuesday, Bitcoin had topped $ 30,000 in at least five separate instances this year, but recovered to trade above that level each time.
“Any significant break below $ 30,000 is going to give players a lot of momentum to throw in the towel,” said Matt Maley, chief market strategist for Miller Tabak + Co. “Therefore, even though Bitcoin will change the world over the long term – that doesn’t mean it can’t fall back into adolescence in the short term.
This is a remarkable drop for digital asset which just weeks ago was on the rise amid a warmer embrace from Wall Street as well as retail investors. But negative attention to its energy use, brought about in large part by Elon Musk of Tesla Inc., along with a crackdown from China has driven it down in recent weeks.
Read more: Crypto-related stocks collapse as Bitcoin plunges to five-month low
China’s latest offensive came on Monday, when the country’s central bank said it had summoned officials from the largest lenders as well as AliPay to reiterate the ban on cryptocurrency services. Chinese authorities are already trying to root out crypto mining operations.
“The continued selling of Bitcoin has contributed to a negative outlook for traders dragged down by bearish news from China,” said Nick Mancini, research analyst at Trade The Chain, a crypto sentiment analysis provider. “The mood among traders now continues to deteriorate.”
Exuberant rallies and quick withdrawals are not uncommon for Bitcoin and other cryptocurrencies. Bitcoin experienced a renaissance in 2017, increasing over 1000% that year, only to lose around 75% the following year. And last year it grew 300%.
“The most speculative part of the market is cryptocurrency,” said Eric Diton, president and CEO of The Wealth Alliance. “Ultimately what determines the value of Bitcoin is acceptance and more demand and supply. When you have a country like China speaking out against Bitcoin, it really hurts its global acceptance and that’s why you see the value deteriorate as much as it has.
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This notice was published: 2021-06-23 03:31:08