Bitcoin Bounces Back After Tumbling Below $30,000

Bitcoin briefly turned positive after tumbling earlier below $30,000 and erasing gains for the year amid growing concern about a broad cryptocurrency, which dropped below the key round -number level for the first time since January, has lost more than 50% from its mid-April high of almost $65,000. The compares with a gain of about 12% for the S&P 500 since the end of December. The coin started 2021 trading around $29,000 following a fourfold increase in 2020.

Such a decline signals “that Bitcoin traders could find themselves in come” said Sean Rooney, head of research at crypto asset manager Valkyrie Investments.

Bitcoin dropped as much as 12% to $28,824 on Tuesday, and recently traded at around $32,690 as of 1:01 p.m in New York.

Chart-watchers said Bitcoin, which failed to retake $40,000 last week, could have a tough time finding support in the $20,000 range following its drop below $30,000. Still Bitcoin had prior to Tuesday breached $30,000 during at this year but recuperated to trade above that level each time.

“Any meaningful break below $30,000 is going to make a lot momentum player to throw in the towel,” said Matt Maley, chief market strategist for Miller Tabak+ Co. “Therefore, even if Bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term.

It’s a remarkable comedown for the digital asset which just weeks ago was trekking higher amid a warmer embrace from Wall Street as well as retail investors. But negative press about its energy use, brought on largely by Tesla Inc, Elon Musk, as well as a clampdown from

China have pushed it lower in recent weeks. China’s latest broadside came Monday, when the nation’s central bank said it had biggest lenders as well as Ailpay to reiterate a ban on cryptocurrency services. Chinese official are already trying to root out crypt mining operations.

“Bitcoin’s continued sell-off has contributed to a negative outlook by traders driven by bearish news out of China,” said Nick Mancini, research analytics provider Trade The Chain.
The mood among traders is now continuing to sour.”    S-ET

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