Bitcoin fell about 12 percent on Thursday and broke below critical support levels to target USD 30,000 for a possible downturn.
The sale took place despite a positive risk on sentiment in the traditional markets. That prompted analysts to blame a ton of fundamentals, ranging from U.S. Treasury Secretary Janet Yellen’s comments about using Bitcoin for illegal purposes to Deutsche Bank’s survey that concluded that the cryptocurrency was in a huge bubble.
When asked specifically about the 12-month fate of Bitcoin and Tesla – a stock that symbolizes a potential tech bubble – a majority of readers think they will halve rather than double, with Tesla more vulnerable, readers said. ” the couch stated in his report.
Bitcoin breaks below the horizontal support zone. Source: BTCUSD on TradingView.com
A $ 30,000 Bitcoin
Pessimistic fundamentals have reversed the short term bullish bias to bearish – technically. The cryptocurrency broke under two critical patterns: the symmetrical triangle and the declining triangle. Voiding their lower trendline support paved the way for Bitcoin to target lower levels – even below USD 20,000 in the medium term.
Nevertheless, the market seemed hopeful for one withdrawal from the levels around $ 30,000. Two weeks ago, the price floor had capped the bears from taking control of bearish correction sentiment after Bitcoin reversed direction as it rallied to its all-time high near USD 42,000. Analysts expect a fractal.
“Two scenarios I’m looking forward to Bitcoin, ”Jacob Canfield, a lead trader at Signal Profits. “It took a little long on this sale, will probably be stopped, but worth the RR on the trend line. Will most likely heavily bid the zone directly below the pit around $30,000. We should see an aggressive buyback if we hit that level. “
Some of the positive feelings are based on an increasing sense of accumulation. Grayscale Investments, a New York-based investment company, bought 16,244 BTC worth more than $ 600 million per day, bringing net Bitcoin reserves to more than 63,000 BTC, which is worth about $ 23 billion. Many analysts agree that their buying habits would offset the cryptocurrency’s downside risks in the long run.
Meanwhile, analysts are also optimistic about it BlackRock’s recent filing with the US Securities and Exchange Commission (SEC). In it, the company, which manages $ 8.7 trillion in assets, said two of its funds plan to invest in Bitcoin futures.
“BlackRock loves BTC, they control the equivalent of 8% of the global GDP. Bitcoin is 0.6% of the global GDP by comparison. This is what happens to it Bitcoin price when the High Net Worth gets that kind of validation to buy BTC. “