What is really behind the decline of bitcoin and why it could take cryptocurrency down to $ 20,000
People have fun at the 2021 Bitcoin Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood on June 4, 2021 in Miami, Florida.
Joe Raedle | Getty Images
The price of bitcoin has fallen about 10% Tuesday at around $ 32,000 and is set to experience its third consecutive day of losses, dragging most other cryptocurrency prices with it. It is down 50% from its all-time high in April.
Many speculate the price moved on the news that US officials recovered most of the ransom paid to the Colonial Pipeline pirates.
Analysts, however, say the move is more likely to be part of a larger consolidation that peaked a month ago. In other words, the technical breakdown in the charts is boosting the action and technical analysts are seeing a possible bottom as low as $ 20,000 from here.
Dave Keller of Sierra Alpha Research said in a market video update to clients that $ 30,000 is the level of support to watch, and that bitcoin is a sharply declining market.
“The move on any given day can be filled with noise and short-term action,” he said, but the chart “has moved from an uptrend phase to a downtrend phase,” citing lower highs and lows, breaking down into moving averages and breaking through traditional support levels.
Bitcoin – 6 months