Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Where Is the “Death” Threshold for Bitcoin? Is It Possible For It to Drop Under 30k?

Cryptocurrency May 25, 2021 03:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Where Is the “Death” Threshold for Bitcoin? Is It Possible For It to Drop Under 30k?

As a digital asset class, Bitcoin has been both acclaimed and scrutinized for its characteristics. The high volatility is Bitcoin’s primary feature by which many social interplays occur. As JP Morgan reported in a letter to investors, the increase in liquidity can be determinant for Bitcoin’s low volatility.

While statements in the crypto space about Bitcoin’s store of value and support from institutional investors create equilibrium between supply and demand, Bitcoin is still dependent on social opinion. Similar to the stock market tendencies, news affects the price of cryptocurrencies. Although Bitcoin has hooked onto a status of the “digital gold” trademarked volatility, it’s the biggest downfall after the price of Bitcoin plummeted nearly 50% from its previous all-time high.

Is there support at 30k?

Breakout news concerning Bitcoin and cryptocurrencies have remodeled the market retail and institutional sentiment towards crypto. According to Eugene Ng, head of business development at Gemini in Asia, stated “systematic algos have turned short” and expects to retest the lower support levels over the weekend. Additionally, Bitcoin’s dip fueled by rejecting news hurried investors to take profits off the table, as they fear a massive sell-off.

Overlapping negative news regarding Bitcoin, starting with Elon Musk stating that Tesla (NASDAQ:TSLA) will no longer accept Bitcoin, the Chinese government reiterating their stance on crypto, and the U.S. government planning to tax crypto transactions higher than $10.000, changes the narrative of Bitcoin cryptocurrencies. In the current market, traders fear a slow bleed similar to 2018; however, they have stated that Bitcoin will range between $30.000 and $42.000. Still, Bitcoin is melting, and as price data suggest, there is still room to fall.

Data from Glassnode suggests Bitcoin miners are currently not selling, and whatever selling takes place is all investors and retail traders. What’s more, leverage trading wipeouts are healthy for the cryptocurrency market. Additionally, a strong pullback is natural in every market, and investors claim to be a healthy sign for more upswing momentum. Although many traders remain optimistic, it depends on how well institutional and retail traders digest the 35% price dip since last week, which affected altcoins even stronger.

Is there support at $30,000? Data from TradingView suggest there is; however, traders have first highlighted that the first support level is at $42.00, which shattered completely. There is an upswing and positive hope in the market as people take advantage of the discounted Bitcoin. Michael Saylor tweeted “entities” are acquiring large sums of Bitcoin, indicating there is still a high demand for digital gold. While Bitcoin is on a downward momentum, predicting the price of an asset that doesn’t behave as regular stocks is difficult.

On the Flipside

  • Elon Musk’s hot and cold evaluations about Bitcoin generate uncertainty and instability in the minds of new retail investors.
  • Cryptocurrencies have no intrinsic value; thus, they don’t have a framework that could suggest when the price bleed would stop.
  • Bitcoin’s volatility indicates the cryptocurrency is a store of value for many investors.
  • The price of Bitcoin has reached previous high and low swings and has always rallied to new all-time highs.

The Media Effect On Bitcoin

Social media and the affordances of the internet have funneled Bitcoin and cryptocurrencies towards a mass audience. After being traded and talked about on forums and bulletin boards, cryptocurrencies are now seeing investments from institutional and corporate investors. What’s more, they are placed on a pedestal or obliterated with critique. Social media paints the grand picture to the masses in the current state, including topics about cryptocurrencies. It controls investor’s moods and can drastically alter the market sentiment towards the digital asset.

According to data, Gen Z and Millenials are more eager and excited about cryptocurrencies. Additionally, they encompass the ideal demographic of social media platforms. The issue surrounding social media in a highly informative era is that it lacks clarity. Information is not verified, and it can influence judgment without even realizing it. What’s more, research indicates that the higher the number of bullish posts, the higher the value of Bitcoin in the future, and vice versa.

FUD in the market can spread like wildfire in a highly connected network as Elon Musk’s activity highlighted, Bitcoin’s or DOGE’s price dependent highlights his actions positively and negatively. To that end, the price of Bitcoin could suffer further losses if media attention shifts towards the disadvantages of cryptocurrency. However, support levels are in play, and investors are still buying into Bitcoin despite the impressive price drop.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Where Is the “Death” Threshold for Bitcoin? Is It Possible For It to Drop Under 30k?
 

Related Articles

Curve DAO Token Gets Rejected, Continues To Decline
Curve DAO Token Gets Rejected, Continues To Decline By DailyCoin - Aug 17, 2022

The Curve DAO token (CRV), an Ethereum token that powers Curve, has been rejected from both a diagonal and horizontal level while trading amidst anticipation of a bullish...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email