Bitcoin fell below $30,000, pushing it below a trading range that had held up for the past four weeks, setting possibly the largest cryptocurrency for deeper price drops.
The cryptocurrency was trading at around $29,998 at the time of writing and is down about 5% in the past week.
Bitcoin has been stuck in the broad $30,000 to $40,000 price range since then mid-May, and broke up shortly below $30,000 June 22. The cryptocurrency traded volatile at $29,700 a day after the People’s Bank of China ordered the country’s major financial institutions to stop facilitating crypto transactions.
“I expect a strong dip towards $22K,” Patrick Heusser, head of trading at Crypto Finance AG, said in a telegram interview on Monday.
Wall Street sees “too much foam” and the current virus jitters are leading to widespread panic selling of all top-performing assets, including bitcoin according to Edward Moya, senior market analyst at Oanda, are at the top of this list.
Moya said bitcoin could be vulnerable to a flash crash to the $20,000 level, which should attract “a lot of institutional buyers who have been patiently waiting on the sidelines”.
“If the stock market sell-off increases, bitcoin and Ethereum will easily extend their declines,” Moya said.
Katie Stockton, founder and managing partner of Fairlead Strategies, said the consolidation phase bitcoin is currently going through is “neutral”.
But in her opinion, she said, “an outbreak is more likely than a slump.”
In April, the bitcoin network was “so vibrant it wasn’t hard to support prices above $50,000,” said Charles Morris, founder of ByteTree Asset Management.
However, according to Morris, network activity has collapsed in recent weeks.
“Now it’s more in line with a $15K bitcoin price than a $50K one,” he said.
Bitcoin peaked just below $65,000 in mid-April.