Bitcoin price plunged more than 44% to below $30k today, continuing a sell-off in cryptocurrency markets that started almost a week ago.
When I was writing this article, the digital currency hit $29,703 as sales intensified after it was revealed that Chinese mining company BTC, BIT Mining, had relocated more than 300 mining machines to Kazakhstan.
The cryptocurrency hasn’t traded at this level since May, and its average price over the past 2 months has fallen below its 200-day moving average, a sign of impending losses.
The weakness of the cryptocurrency market looks interesting as the market has remained extremely volatile since its record high in April 2021. While most of the market remains in the red, it is possible that the coin could drop to $28k or $35k in the next few days.
Some chartists also say Bitcoin could retest the $30k level it briefly touched during its sharp sell-off in May.
If so, given the reaction of most investors to bearish signals, it could be difficult to find support in the $20k area.
Bitcoin’s earnings this year have plummeted to around 11%, which is in line with the S&P 500 projections in 2021. For those who crave drama, the coin will see a third straight monthly loss.
“There is just a lot of fear, and when there is fear, people sell risky assets. I think Bitcoin is still seen as a risky asset,” said Meltem Demirors, CoinShares chief strategy officer, of Bloomberg’s “QuickTake Stock” streaming program. In general, “investors are fearful.”
Will Bitcoin Price reach $28k on Friday? Feel free to let us know in the comments section.