Bitcoin has plunged more than 44% to below $30,000 today, continuing a major sell-off in the cryptocurrency markets that began almost a week ago.
At the time of writing, the digital currency hit as low as $29,703 as the selling intensified on the back of news that the Chinese BTC mining firm, BIT Mining, has relocated more than 300 mining machines to Kazakhstan.
The cryptocurrency hasn’t traded at those levels since May, and its average price over the last 2 months has fallen below that of its 200-day moving average, a sign of impending losses.
The weakness in the cryptocurrency market looks interesting, considering that the market has remained extremely volatile since hitting record levels in April 2021.
While most of the market remains in the red, there’s a chance that we’d get to see the coin either fall as low as $28,000 or as high as $35,000 in the next few days.
Some chartists also say Bitcoin could re-test the $30,000 level, which it briefly touched during its brutal May selloff. If that happens, it could have a tough time finding support in the $20,000 range, given how most of the investor pool reacts to bearish signals.
Bitcoin’s gains this year have crashed to roughly 11 percent, in-line with the projections made by the S&P 500 so far in 2021. For those who yearn for drama, the coin is on pace for a third straight monthly loss, so to speak.
“There’s just a lot of fear, and when there’s fear, people sell risky assets. I do think that Bitcoin’s still perceived as a risk-on asset,” Meltem Demirors, chief strategy officer at CoinShares, said on Bloomberg’s “QuickTake Stock” streaming program. “Generally, investors are skittish.”