Bitcoin price suddenly falls below $30k on China news

The price of Bitcoin has suddenly fallen below $30,000 on Tuesday, following the bad news from China. In total, more than half a trillion dollars has been wiped from the crypto market in the last seven days, as the cryptocurrency lost more than 50% since its all-time peak in April. Experts say about the market ‘freefall’ and the ‘moment of truth.’

The cryptocurrency has suffered several price plunges in the last few days, as China has escalated its crackdown on cryptocurrencies. The country continued to ban mining activity and tightened restrictions for major crypto platforms and lenders.

Several other top cryptocurrencies, such as Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE), have followed BTC’s latest fall.

For the first time since February, the market crash took off the cap of all cryptocurrencies below $1.2 trillion combined. To simply put it, half of the trillion dollars has been wiped from the market by the last seven days.

“The crypto market is in freefall with support levels broken with ease… the latest Chinese mining ban is fuelling the move lower but the overall market tone is very negative with little reason to buy the market,” said Nicholas Cawley from trading analysis firm DailyFX.

Alex Siman, the founder of Subsocial, a decentralized social network, said about the latest news: “At this rate of fall, it’s difficult to predict the level at which the price will form a baseline for an imminent rebound, as big investors with the potential to reverse prices are choosing to watch from the sideline.

“While we can still see a positive dynamic before the end of this year, to me, steeper plunges to $20,000 won’t come as a surprise either,” he added.

Before, Glen Goodman, a market analyst of The Crypto Trader, wrote on Twitter Bitcoin faces a “moment of truth” as it gets closer to the end of a possible price pattern.

The head-and-shoulders pattern that began to form back in January is nearing the end of the second neckline, meaning the next market movements could prove crucial to Bitcoin’s future trajectory.

“Completion would be red arrow. Failure green arrow,” he tweeted in late May, pointing the left shoulder found resistance at around $30,000, which is where we are currently heading.

Although, after a short dropping under $29,000, Bitcoin’s price has returned to $31,042 by the moment but unstable.

Source: https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-price-crash-latest-b1870559.html