Bitcoin fell below $30,000, falling below a four-week trading range. Moreover, perhaps pointing to further price losses for the world’s largest cryptocurrency.
At press time, the cryptocurrency was trading at about $29,998, down around 5% over the previous week.
Since mid-May, Bitcoin has been stuck in a broad price range of $30,000 to $40,000. It briefly dipped below $30,000 on June 22. After the People’s Bank of China ordered the country’s main financial institutions to stop supporting crypto transactions, the cryptocurrency briefly traded at $29,700.
The Virus Effect
According to Edward Moya, senior market analyst at Oanda, Wall Street is experiencing “too much froth.” Additionally, current virus fears are causing widespread panic selling of every top-performing asset, with bitcoin (BTC, -6.49 per cent) being right at the top of the list.
Bitcoin, according to Moya, might be vulnerable to a rapid fall towards the $20,000 mark. This “should attract many institutional buyers that have been waiting patiently on the sidelines.”
According to Katie Stockton, founder and managing partner of Fairlead Strategies, the present consolidation period in bitcoin is “neutral.”
However, she believes that “a breakthrough is more plausible than a breakdown.”
Bitcoin was ‘lively’ in April
According to Charles Morris, founder of ByteTree Asset Management, the bitcoin network was “so lively” in April that “it wasn’t difficult to maintain values above $50K.” In mid-April, Bitcoin reached a high of slightly about $65,000. However, Morris claims that network activity has plummeted in recent weeks. He added:
“It now more closely resembles a $15K bitcoin price than a $50K.”