Bitcoin price slipped below $30,000 for the first time in 2021 recording a new 5-month low of $29,469 earlier today. The market sell-off has led to the top cryptocurrency losing its key $30k support, which it has held for more than 6-weeks. The current market sell-off is being attributed to the continuous crypto crackdown by Chinese authorities.
After losing the key support of $30K, BTC would need to hold on to an immediate support range of $28,000 – $28,500, failing which the next key support area would be around $24,000 following which it might fall to $20K levels. The top cryptocurrency has already lost 54.33% from its ATH of $64,863 and the current bearish sentiment could push it further down.
Analysts believe if the top cryptocurrency doesn’t bounce back above $30K soon, the week could get bloodier for the crypto market. With the Bitcoin death cross already in play, the market sentiment is currently being dominated by the bears.
— Sven Henrich (@NorthmanTrader) June 22, 2021
The Silver Lining to the Current Market Sell-Off
The current market sell-off being triggered by the Chinese crackdown has a silver lining, as per Bobby Lee the CEO of Ballet Bitcoin wallet, the crypto market has historically bounced back from the sell-off phase which to many seemed like an end of the road to the bull run. Comparing the Chinese crackdown in 2017, Lee highlighted that the authorities had put a similar ban in August 2017, but the crypto market bounced to new highs in November 2017 against all odds.
Mike Novogratz, the CEO of Galaxy Digital said the recent sell-off presents a perfect buying opportunity and believes the market is more mature at present than ever before. He also advocated for regulations as they could help in bringing more institutions to Bitcoin.
“The ecosystem is so much more mature,” said billionaire investor @novogratz on $BTC‘s volatility. “I think a lot of clients who didn’t buy it the first time will see this as an opportunity to get involved.” pic.twitter.com/wzPzw17UJ9
— Squawk Box (@SquawkCNBC) June 22, 2021