Since mid-May, bitcoin has been stuck in a price range of $30k to $40k — briefly retreating below the $30k mark on June 22.
After the People’s Bank of China (PBOC) ordered the country’s major financial institutions to stop facilitating crypto transactions, the cryptocurrency briefly traded at $29,700 per day.
Breaching a four-week trading range and potentially setting the stage to a deeper dive in price, bitcoin fell below the $30,000 mark.
The crypto world is still reeling from the virus scare
According to an analyst, Wall Street is experiencing “too much” froth, as the world’s most popular crypto drops below 30k for the first time in a month.
This, in the face of the ongoing pandemic scare that caused widespread panic selling of assets, including bitcoin.
Down about 5% from the previous week, the cryptocurrency at press time was trading around $29,998.
What experts say
Patrick Heusser, head of trading at Crypto Finance AG, said “I am expecting a strong dip towards $22k,” in a telegram interview on Monday.
The founder and managing partner of Fairlead Strategies Katie Stockton said that bitcoin is in a “neutral” consolidation phase. However, she believes that “a breakout is more likely than a breakdown.”
Charles Morris, the founder of ByteTree Asset Management, on the other hand, said the bitcoin network was “so vibrant” in April that “it wasn’t difficult to support prices above $50,000.”
Although Morris claims that in recent weeks, the level of network activity has plummeted. “Now it is more in keeping with a $15K bitcoin price than a $50K,” he said.
Can it (crypto world) still bounce back?
Experts say yes, it can recover. As the overall price is currently nowhere near the cryptocurrency’s mid-April record highs, but it’s still significantly higher than this time last year.
However, the savings and investment specialist at Scottish Friendly, Kevin Brown, disagrees. And warns against investing for anyone who does not understand the market.
“The level of volatility means that savers who choose to invest in cryptocurrencies must be prepared to lose all their money,” he said.
Image courtesy of Cointelegraph News/YouTube