BCGAME - Free 5BTC Daily Bonus!Bitcoin dropped below $30.000, breaking below a trading range it held for the past four weeks and potentially setting the largest cryptocurrency for deeper price declines.
The cryptocurrency has been trading around $29.998 so far and has dropped about 5% last week.
Bitcoin has been locked in the broad $30.000 to $40.000 price range since mid-May, and briefly surpassed the $30.000 mark on June 22. The cryptocurrency briefly traded as high as $29.700 a day after the People's Bank of China ordered the country's major financial institutions to stop facilitating crypto transactions.
"I'm expecting a sharp drop to $22," said Patrick Heusser, head of trading at Crypto Finance AG, in a cable interview on Monday.
Wall Street is seeing “a lot of foam” and current jitters are generating widespread panic in selling all the best-performing assets, with bitcoin topping the list, according to Edward Moya, senior market analyst at Oanda.
Moya said bitcoin could be vulnerable to a flash crash to the $20.000 level, which "should attract many institutional buyers who have been waiting patiently behind the scenes."
“If the stock market selloff intensifies, 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 his opinion, "a breakup is more likely than a meltdown."
In April, the Bitcoin network was “so vibrant that it wasn't hard to afford prices above $50,” said Charles Morris, founder of ByteTree Asset Management.
However, in recent weeks, Morris said, the network's activity level has collapsed.
“Now it's more in line with a $15 bitcoin price than a $50K price,” he said.
Bitcoin peaked just below $65.000 in mid-April.
