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Another bad week for Bitcoin could be a harbinger of more pain, according to strategists watching the cryptocurrency sell-off.
Further weakness could consider the $ 20,000 zone as a downside target, so Oanda Corp., Evercore ISI and Tallbacken Capital Consultant GMBH. Bitcoin fell about 2% to $ 33,000 at 11:23 a.m. in Hong Kong and is down about 10% so far in June.
The largest cryptocurrency is “dangerously nearing the $ 30,000 level” amid growing regulatory fears in the US, and “a break of $ 30,000 could create tremendous sales momentum,” said Edward Moya, senior market analyst at Oanda Corp. .
Bitcoin is down about $ 32,000 from its April record, shaken by a reprimand from billionaire Elon Musk about the energy needed and renewed crackdown by regulators in China. The ability of US authorities to reclaim a high-profile Bitcoin ransom has also marred the notion that it is beyond government control, which was a tenet of belief for some supporters of the coin.
The technical strategist at Evercore, Rich Ross and Tallbacken Capital Consultant‘Michael Purves have both marked the $ 20,000 area as a potential key level if Bitcoin plunges much deeper than it is now.
Others, however, remain optimistic about the longer-term outlook. For example Michael Saylors MicroStrategy Inc. raised a junk bond sale from $ 400 million to $ 500 million to fund the purchase of more bitcoin. MicroStrategy has grown into one of the most optimistic public companies around cryptocurrencies.
About a week after Bitcoin’s all-time high in mid-April, Purves had argued that the bullish fall “looked”strongly challenged. “
“How much deeper can it go?” Purves asked in his note on Tuesday. “The most obvious answer is still to fully trace the outbreak from $ 20,000 – in other words, back to $ 20,000.”
– With the support of Joanna Ossinger