The price of the cryptocurrency Bitcoin tumbled within a trading range of just over $30,000, leading cryptocurrency experts to identify this number as a potential bottom.
Predicting cryptocurrency trends is risky, not least because the price of Bitcoin has almost halved from a record high near $65,000 just three months ago. However, some in the sector agree that $30,000 is a support level, citing evidence from options activity and recent trading habits.
The $30,000 low is the most present of the options for July and August, indicating confidence among these traders that this level will continue, according to Delta Exchange, a crypto derivatives exchange, with CEO Pankaj Palani saying: “It should provide strong support to the market.” “.
Traders are also trying to take advantage of price ranges, including buying between $30,000 and $32,000 and selling in the $34,000-$36,000 range, said Todd Morakis, co-founder of digital finance products and service provider GST Capital, In comments via email, adding that the market “at the moment seems to be more interested in bad news than most”.
Bitcoin has been hit by several setbacks recently, including a Chinese regulatory crackdown – in part due to concerns about rising energy consumption by crypto miners – and advances in central bank digital currency projects that could put pressure on private cryptocurrencies.
The creator of Dogecoin, which was created as a joke to mock Bitcoin at the time of its launch, recently dealt a blow to the cryptocurrency, calling it a hoax, and the appetite for speculation has generally waned.
Bitcoin was trading at around $31,600 this morning in London, and is down about 6% this week. But the price is still up more than 200% in the past 12 months, despite the crash in 2021.
Konstantin Richter, CEO and founder of Blockdaemon, a blockchain network infrastructure provider, is hoping for institutional demand, arguing that Bitcoin must drop below $20,000 before institutions begin to question the “health” of the sector.
“If the price goes down quickly, it can go up quickly as well,” he said in an interview. “That is exactly what crypto is.”