The price of the leading cryptocurrency, Bitcoin [BTC], dropped below $30k, breaking below a trading range that had held for the past 4-weeks and potentially fixing the top cryptocurrency for deeper price declines.
The cryptocurrency is presently trading at a price of around $29,886 USD at the reporting time and is down about 5% over the past week.
Bitcoin has been locked within the broad price range of $30k to $40k since mid-May, and briefly broke below the $30k mark on 22nd June. The cryptocurrency fleetingly traded at $29,700 USD, the other day after the PBoC [People’s Bank of China] ordered the country’s major financial institutions to prevent facilitating crypto transactions.
“I am expecting a robust dip towards $22K,” outlined Patrick Heusser, head of trading at Crypto Finance AG, within a telegram interview on Monday.
Wall Street is seeing “too much froth” and present virus jitters are triggering widespread panic selling of each top-performing asset, with bitcoin being right at the highest of this list, consistent with Edward Moya, the senior analyst at Oanda.
Moya added that bitcoin might be susceptible to a flash crash towards the $20k price level, which “should attract many institutional buyers that are waiting patiently on the sidelines,”
Katie Stockton, founder and managing partner of Fairlead Strategies, added that the consolidation phase bitcoin is presently experiencing is “neutral.”
But in her view, “a breakout is more likely than a breakdown.”
Earlier in April, the Bitcoin network was “so vibrant, it wasn’t difficult supporting prices above $50K,” explained Charles Morris, founder of ByteTree Asset Management.
Moreover, in recent weeks, Morris said, the extent of network activity has collapsed.
“Now it’s more in keeping with a $15K bitcoin price than a $50K,” he added.