There was no change in the broader market to explain the abrupt drop. However, Bitcoin has been fluctuating between $31,000 and $35,000 over the past few weeks. The big question is whether it will drop below $30,000 or break above $35,000 eventually.
Bitcoin’s all-important support level of $32,000 enabled it mount a recovery over the weekend. As per our statistics, Bitcoin was trading far above $33,000 at the time of publication. This comes after a price rise of over 2% in the previous 24 hours. If the crypto king can sustain its current momentum, it should narrow in on or surpass $35,000 by the beginning of next week.
Nevertheless, the digital asset’s transaction volume is at an all-time low. Data reveals that spot trade volume decreased by 42.7%, while derivative volumes decreased by 40.7%.
The latest Bitcoin mining regulation in China has played a major role in this. Furthermore, with volatility being low, investors who choose to patiently wait showed little interest. Analysts are cautioning that the present stage may last months, emphasizing that “around $33,000 to $34,000 is indeed a very key retracement level,” as Bitcoin and the total market head into the next month continuing the same trajectory.
While speaking to CNBC, Craig Johnson, chief market analyst at Piper Sandler, stated that Bitcoin has lost over 45% of its $64,000 high. He emphasized the previous two cycles, each of which prolonged 1,000 days.
“You have to be willing to hunker down and wait for an opportunity to stabilize for a little longer before starting the next major huge move higher.” Blue Line Capital President Bill Baruch told CNBC that he and several other investors were interested in the $25,000 stake in order to amass additional Bitcoin. “If you gave me $25,000 in bitcoin, I’d purchase a lot more,” Baruch remarked. He’s already has a long position in the $32,000 range, but he’s aiming for the $25,000 level.
Although a specific incident may easily affect Bitcoin, recent news, both favorable and unfavorable, has had little influence on the digital currency since the China mining clampdown. One such event is Square’s recent revelation that it was working on a hardware wallet.
Its hardware, which comes from one of the most reputable firms in the sector, is expected to boost the acceptance of the digital asset, particularly among investors who are concerned about the security of existing solutions.
The forthcoming GBTC unlocking, which will take place later this month, is expected to be one of the main tests, although analysts are divided on whether it will have an influence on pricing.