Another bad week for Bitcoin could be a harbinger of more pain, according to strategists watching the sell-off in Cryptocurrencies.
According to Oanda Corp., further price weakness could occur. consider the $ 20,000 zone as a downside target. Evercore ISI and Tallbacken Capital Advisors LLC. 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 has lost about $ 32,000 from its April record, shattered by a rebuke from the billionaire Elon Musk about the energy demand as well as renewed crackdown by the regulatory authorities 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.
Evercore technical strategist Rich Ross and Michael Purves of Tallbacken Capital Advisors have both identified the $ 20,000 area as a potential key level if Bitcoin breaks much deeper than it does now.
Others, however, remain optimistic about the longer-term outlook. For example Michael Saylors MicroStrategy Inc. increased 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 case looked “very 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.”