Bitcoin crashes below $30,000 as slump continues

Bitcoin has lose 29% of its value in less than three weeks following its sensational all-time high of $41,000 as bullish traders run out of steam

Bitcoin is currently trading at $29,600 following a devastating sell-off that saw it lose the critical $31,000 level of support.

The world’s largest cryptocurrency is now trading 29% lower than when it printed a new all-time high of $41,000 on January 8.

The clearest factor in the recent fall in price has been the rise of the Dollar index (DXY), which is currently testing a diagonal level of resistance dating back to March, 2020.

If a DXY breakout comes into fruition it will more than likely test 91.785, which would coincide with a further drive south for Bitcoin with targets emerging at $27,750 and $24,100.

From a macro perspective, Bitcoin could remain bullish as long as it establishes a level of support above the previous all-time high at $20,000, although it remains to be seen whether institutions that bought in above $30,000 become to consider liquidating their respective positions.

BTCUSD chart by TradingView

The two more recent investments came earlier this week with mining company Marathon investing $150 million into Bitcoin, while MicroStrategy purchased and additional $10 million to take its aggregated holdings up to $1.13 billion.

Institutional investors have not yet felt the squeeze of a Bitcoin bear market, which could cause additional panic if Bitcoin begins to continue down to the $27,750 level of support.

On the lower-time frames, it’s hard to ignore Bitcoin’s posture of forming consecutive lower highs followed by lower lows, both of which are indicative of a downtrend.

However, it’s worth noting that Bitcoin has bounced from below $30,000 on two occasions since the turn of the year so until it begins to print daily candles beneath $27,750, it remains in a relatively neutral zone.

For more news, guides and cryptocurrency analysis, click here.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

telegram

Previous Article

FTX lists GameStop (GME) futures amid unprecedented demand

Next Article

Latest Litecoin price and analysis (LTC to USD)

Read More Related articles

Latest Guides

Find in-depth articles, guides and videos designed to give you a better understanding of Bitcoin, DeFi, trading, security and much more.

Get started