People are enjoying themselves at the Bitcoin 2021 Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood, Miami, Florida on June 4, 2021.
Joe Raedle | Getty Images
Bitcoin’s price fell about 10% on Tuesday to about $ 32,000 and is on its way for the third consecutive loss day, bringing in most other cryptocurrency prices. It is down 50% from its all-time high in April.
Many have speculated on the price, due to news that US officials are getting back most of the ransom money paid to the Colonial Pipeline hackers.
However, analysts say the move is more likely part of a broader consolidation starting from the highs from a month ago. In other words, the technical breakdown on the charts is what drives the action, and technical analysts see a potential low of as much as $ 20,000 from here.
Sierra Alpha Research’s Dave Keller said in a market video update to clients that $ 30,000 is the level of support being observed and that Bitcoin is a market in a clear downtrend.
“Movements on a given day can be filled with noise and short-term action,” he said, but the chart “has transitioned from an uptrend phase to a downtrend phase,” quoting lower highs, lower lows, breaking the moving averages and breaking traditional support levels.
Bitcoin – 6 months