Bitcoin falls below $30,000, next stop seen at $20,000

London - Bitcoin down 20% in last six days; Ether tumbles as well; China mining crackdown spreads to Sichuan

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Bitcoin fell as low as $31,333, a two-week trough, dragging down other cryptocurrencies. It was last down 10.7 per cent, its largest daily percentage loss in a month. — Reuters file photo

By Waheed Abbas

Published: Tue 22 Jun 2021, 2:03 PM

Last updated: Mon 6 Sep 2021, 11:14 AM

Bitcoin price continued to slide on Tuesday, falling below an important support level of $30,000.

The world’s largest cryptocurrency lost more than 10 per cent on Monday, which was its largest one-day drop in more than a month.

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Bitcoin fell to $29,766 at around 5.15pm UAE time, down by nearly 7.42 per cent.

“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of Bitcoin. But investors should remember that Bitcoin is a kind of asset which has fought many similar pessimistic views many times,” said Naeem Aslam, chief market analyst at London-based Ava Trade.

“The current sell off could be the opportunity for many investors to load their portfolio with Bitcoin which is selling at a huge discount. Although, it is true that more sell-off can take place and no one knows really where the exact bottom will be. But for now, one thing is for certain, that it is not the time to sell Bitcoin,” said Aslam.

China has asked some banks and payment firms, including China Construction Bank and Alipay, to crack down harder on cryptocurrency trading. China has been tightening its crackdown on cryptocurrencies.

On Friday, authorities in the southwest province of Sichuan ordered Bitcoin mining projects to close.

In May, China's cabinet vowed to clamp down on mining and trading to control financial risks.

Ipek Ozkardeskaya, senior analyst at Swissquote, sees the next support level for Bitcoin is $20,000 after $30,000 level has been broken.

waheedabbas@khaleejtimes.com

Waheed Abbas

Published: Tue 22 Jun 2021, 2:03 PM

Last updated: Mon 6 Sep 2021, 11:14 AM

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