Bitcoin En Route to $30,000 After Price Falls ~12% in a Day; Here’s Why

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Bitcoin fell around 12 percent on Thursday, falling below critical support levels to hit $ 30,000 for a possible pullback.

The sell-off occurred despite positive risk sentiment in traditional markets. This prompted analysts to blame a range of fundamentals, ranging from US Treasury Secretary Janet Yellen’s remarks about using Bitcoin for illegal purposes to Deutsche Bank’s survey that the cryptocurrency is in a massive bubble.

“When the majority of readers are asked specifically about the 12-month fate of Bitcoin and Tesla – a symbol of a potential tech bubble – they believe they will halve rather than double from those levels, with Tesla being more vulnerable, according to readers . ”The bank stated in its report.

Bitcoin breaks below the horizontal support zone. Source: BTCUSD on TradingView.com Bitcoin breaks below the horizontal support zone. Source: BTCUSD on TradingView.com

A $ 30,000 bitcoin

The pessimistic fundamentals have turned Bitcoin’s short-term bullish bias to bearish – technically. The cryptocurrency fell below two critical patterns: the symmetrical triangle and the descending triangle. The invalidation of their support for lower trendlines paved the way for Bitcoin to target lower levels – even below $ 20,000 in the medium term.

Even so, the market appeared to be hoping for a retreat of around $ 30,000. Two weeks ago, the price floor had prevented the bears from taking control of bearish corrective sentiment after Bitcoin reversed direction as it rose to its all-time high near $ 42,000. Analysts expect a fractal.

“Two scenarios that I’m looking at Bitcoin, ”said Jacob Canfield, Lead Trader at Signal Profits. “It took a while on this sell-off, it will most likely stop, but it’s worth the RR on the trendline. Most likely the area just below the wick will bid $ high30th,000. Should see an aggressive buyback when we hit this level. “

Bullish catalysts

Part of the upward sentiment can be traced back to a rising mood of accumulation. Grayscale Investments, a New York-based investment firm, bought 16,244 BTC worth more than $ 600 million in one day, increasing their net bitcoin reserves to more than 63,000 BTC, worth around $ 23 billion. Dollar equals. Many analysts agree that their buying frenzy would offset the downside risks of the cryptocurrency in the long term.

Meanwhile, analysts are also optimistic that BlackRock recently filed with the US Securities and Exchange Commission. In it, the company, which manages $ 8.7 trillion in assets, said two of its funds plan to invest in bitcoin futures.

“BlackRock loves BTC, they manage the equivalent of 8% of global GDP. By comparison, Bitcoin accounts for 0.6% of global GDP. Happens Bitcoin Price when the high net worth gets this type of validation to buy BTC. “