Earlier this week, China’s central bank summoned some banks and payment institutions, urging them to promptly cut payment channels for cryptocurrency trading. Following this, Bitcoin dropped below $30,000 for the first time since January 2021.
Even on technical charts, numero uno crypto token Bitcoin formed a ‘death cross’, signalling further losses ahead. Prices of Bitcoin have already halved since its peak of $65,000 in April this year. Market players are citing jitters on bitcoin mining in thin liquidity for the losses.
Michael Novogratz, founder and chief executive officer of Galaxy Digital, told the Qatar Economic Forum he is still a buyer of Bitcoin and prefers the digital currency to buying gold.
Nassim Taleb, once an admirer of Bitcoin, renowned author of highly-regarded books such as
Black Swan and Skin in the Game, believes that the true value of the digital token is no higher than a zero.
Volatile Market
“The past 24 hours were massively volatile for the cryptocurrency market. Bitcoin broke below the critical support level of $30k before making a day’s low of $28,91. A short lived rebound quickly followed the dip. It is one of those days where stop losses got triggered on both long and short positions,” said Edul Patel, CEO and Co-founder, Mudrex.
Some investors found the silver lining to this volatility by buying the dip across the spectrum. For now, some consolidation can be expected as the panic fades from the market, he added.
Back home, Indian family offices and wealthy individuals are joining the crypto bandwagon in droves. As the acceptance of cryptocurrencies is increasing among global institutions, Indian family offices and wealthy investors have poured as much as Rs 1 crore into crypto investments.
Also, top Indian crypto exchanges are in the final stages of joining IndiaTech, an industry association representing India’s consumer internet startups, unicorns and investors, to increase pressure on the government to regulate crypto in India.
Tech View by ZebPay Trade Desk
Bitcoin is hovering around $34,050, showing mild gains in the last 24- hours.The cryptocurrency, after breaking down of the long-ranged descending channel, is back under the trading range formed over the last two weeks with this time looking out to break the upper band of the resistance in the 4-hour chart.
There have been accumulation points as depicted in the chart above around $31,000 despite the stiff negative news around China broadening the ban on Bitcoin mining.
We see some forms of reversal with a pattern “morning star” taking shape post the “hammer” indicating reversal up to $38,000 – $42,000. The pull-back post of the triple-bottoms to the higher resistance line of the descending channel is a positive sign.
Outlook: Positive (Pull-back Relief)
Target: $37,500, 39,000 and $42,000 against $31,000.
Crucial Supports: $28,900 and $26,500
The above analysis can be negated if BTC falls below $27,000.
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)