Six months of gains come to naught as bitcoin rebounds sharply after falling through $30,000 in a V-shaped move that leaves people stunned

Bitcoin continued its downward spiral on Tuesday, falling through a key $30,000 support level at one point and wiping out six months of gains.

Six months of gains come to naught as bitcoin rebounds sharply after falling through ,000 in a V-shaped move that leaves people stunned

Bitcoin has fallen from a high of nearly $65,000 in mid-April and is now down more than 50 percent. Bitcoin continued its downward spiral on Tuesday, falling through a key $30,000 support level to a low of $29,212, wiping out six months of gains. But just as the market was in the midst of extreme pessimism, the bitcoin price rebounded dramatically, making a perfect V-shaped move in less than 6 hours. As of this writing, Bitcoin is trading at $32,065.42, down 4.90 % intraday. Not only Bitcoin, but other cryptocurrencies were hit even harder, with Ether down 5.92%, Dash plunging 22%, XRP down 21%, and Litecoin down 18%, according to Bittorrent data.

Miller Tabak + Chief Market Strategist Matt Maley said in an interview with Bloomberg, saying, “Once Bitcoin falls below $30,000, the bulls may soon surrender and admit defeat.” He argued that even though bitcoin will change the world in the long run, that doesn’t mean it can’t fall back into the teens in the near term.

If bitcoin’s $30,000 support level is indeed breached in the near future, it will need to hold on to the $28,000-28,500 support range, which is very fragile, but a further bottoming could hit MicroStrategy near its cost line, and then perhaps the full attention of the cryptocurrency community will be directed to MicroStrategy, the “Bitcoin ETF,” saw its shares fall nearly 9 percent on Tuesday.

Six months of gains come to naught as bitcoin rebounds sharply after falling through ,000 in a V-shaped move that leaves people stunned

The market is currently attributing the drop to the fact that China’s central bank cut off all financial services related to the cryptocurrency market on Monday, strictly prohibiting banks and payment institutions from participating in cryptocurrency trading. But considering that the real decline has been going on since early May, it is not easy to attribute the cause to a single piece of bearish news.

There’s no shortage of whale plunges, as F2Pool co-founder and Stake.fish founder Chun Wang tweeted today, “I’ve bought 1,100 bitcoins in the past few days and will continue to do so in the future.”

Six months of gains come to naught as bitcoin rebounds sharply after falling through ,000 in a V-shaped move that leaves people stunned

Speaking to CNBC, Galaxy Digital CEO Mike Novogratz said the market is seeing a lot of liquidation and it’s hard to pinpoint a bottom, saying, “$25,000 is the next significant level of support if the market does get disrupted. Look, I’m not as happy as I was at $60,000, but I’m not nervous”. Novogratz pointed to the Chinese government’s crackdown on cryptocurrencies as a cause of excessive volatility, but a positive factor in the long run: “The ecosystem is more mature. The number of players that are entering is much more mature. Every bank is developing their own crypto project on how to offer bitcoin to their wealthy customers.” He also said that the recent sell-off was a perfect buying opportunity and believes that the market is now more mature than ever. He also advocates compliance, as these regulations help allow more institutions to introduce bitcoin.

In times of extreme market panic, many speculators take the opportunity to switch from long to short, as evidenced by Bybit’s long-short ratio data, which shows the recent rise in short power, with even a number of big names, including Mike Novogratz, setting their sights on the $25,000 neighborhood. But given the high leverage that often accompanies contract shorts, once the market rebounds against the trend, it will be quickly liquidated and become the fuel for Bitcoin’s renewed rally. So this rally, which started around 10 p.m. BST, doesn’t rule out the possibility of a “short sale.

Six months of gains come to naught as bitcoin rebounds sharply after falling through ,000 in a V-shaped move that leaves people stunned

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