May 21, 2022

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CryptoPanic Bitcoin Sinks And Loses USD 30000

3 min read

Selling panic takes over the cryptocurrency market. Bitcoin has fallen 8% this Tuesday, losing at times the key support of $ 30,000 , an area that experts classify as the last frontier to prevent a major crash of bitcoin and the rest of cryptocurrencies.

After sinking 15% last week, bitcoin began on Monday with declines of more than 5% , which led the king of cryptocurrencies to fall to the area of ​​$ 32,500. This Tuesday, sales continue to dominate the market and bitcoin struggles to maintain the area of ​​$ 30,000. The digital currency thus returns to levels of the end of January .

This wave of sales has impacted the entire crypto universe, with severe falls in ether , the second cryptocurrency in capitalization, which already pierces $ 1,800 when not so long ago it aspired to 3,000. Cardano has also posted sound losses, dropping almost 20%.

Harassment from Chinese regulators and uncertainty about the future of cryptocurrencies is weighing on investor sentiment, who are fleeing this market and undoing positions. Riskier assets suffer when sentiment starts to change.

Bitcoin loses $ 30,000
From the asset management firm Vontobel they recognize that this is going to give ‘play’ for the summer: “One of the great fronts, again, we find it in the cryptocurrency markets , where once again we are witnessing important corrections, after members of the Finance Committee in the US Senate to point to greater regulatory control over cryptocurrencies. ”

“We will most likely continue to trade within the range of $ 30,000-40,000 and hopefully $ 30,000 will work as support and remain as the low of the year,” said Antoni Trenchev, co-founder of London-based cryptocurrency firm Nexo. in statements to Bloomberg . “If these are not met, we could go to $ 25,000 or even $ 20,000 before the next trend begins.”

Edoardo Fusco, an analyst at eToro, explains in a comment that “the crossing of the 50-session moving averages and the 200-session moving averages represents what in technical analysis is called the death curve and defines a particularly weak technical framework for the bitcoin in this phase “, assures the expert.

“However, we are facing a triple bottom, the first having formed on May 20. In the formation of the other lows, the RSI showed upward expansion and ascending lows, a typical pattern of accumulation phases. This triple bottom has a key support in the area of ​​$ 29,700 , a level below which the scope of the correction could deepen, “explains the eToro expert.

Why is bitcoin sinking?
The bitcoin has reached the fiery summer. The storm unleashed in May when Tesla CEO Elon Musk denied cryptocurrency due to the high environmental impact of its mining and stopped accepting it in his company as a form of payment. A correction began that was accused when the People’s Bank of China , the central bank of the Asian giant, redoubled the restrictions on its financial institutions for operating with cryptocurrencies.

In the midst of the fall caused by these news, other organizations such as the ECB or the Bank of Japan added fuel to the fire by comparing the price of the token with historical bubbles and influencing its absence of real value. Despite the fact that the price found moments of respite and specific support, such as that of the famous investor Cathie Wood, of the ARK fund, the more than $ 64,000 in mid-April was a long way off. In May, up to 35% had been left .

Subsequent partial rectifications by Musk and news such as El Salvador officially accepting the cryptocurrency barely pushed it higher, while the bad news kept coming. On June 10, the Basel Committee on Banking Supervision published its proposal to demand tougher capital requirements from banks that operate with bitcoin and others of its peers.

Not many days later it transpired that the Chinese authorities have been serious about limiting the mining of bitcoin in the country, paralyzing this work in various regions of the country. The fact that China agglutinated 65% of the global hashrate or computing power destined to mining bitcoin has affected the digital currency. Many Chinese miners are looking for a new destination while sales have continued to skyrocket, driving the price down.

The auction came this Monday when it was found that the digital currency had reached the chart point known as the ‘death cross’ and again the People’s Bank of China announced that its officials have met with representatives of the Industrial & Commercial Bank of China (ICBC ), Agricultural Bank of China, China Construction Bank, Postal Savings Bank, Industrial Bank and Alipay Network Technology to curb cryptocurrency trading.

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