Bitcoin Price Tanks Under $29,000, Will It Regain $30,000 Soon?

CoingapeSell-off in the broader cryptocurrency market has intensified as the world’s largest digital asset Bitcoin (BTC) tanks by another 5% thereby dropping down under $29,000. As of press time, Bitcoin is trading 4.28% down at a price of $28,913 and a market cap of $559 billion.

Along with Bitcoin, the top ten altcoins have corrected anywhere between 5-10% as bears seem to be taking a dominant position currently. Currently, $28,450 is a crucial support zone for Bitcoin below and it can fall further all the way to $25,000.

Even at the current price, Bitcoin’s year-to-date gains stand at a staggering 75%. Also, the sentiment around Bitcoin has turned positive recently with the hope that Fed could be loosening its monetary policy going ahead. However, inflation would be a key metric to watch going ahead which has been sticky so far and shown little signs of cooling down.

Is Bitcoin’s Retreat to $30,000 Possible Now?

As the crypto bears take a dominant position in the market right now, there are a few good signals that keep the optimism alive that the Bitcoin price can once again rally to $30,000 and above. Yesterday, Coingape reported, Bitcoin whales have once again started accumulating BTC after a long sell-off period. As per the data analyzed by Bloomberg:

Bitcoin rose about 7% on average over three, five and 10 days after the previous 17 such signals in the last five years. The study identified bullish periods by using the token’s relative strength index, a momentum gauge, which had to be above 50.

Noelle Acheson, author of the “Crypto Is Macro Now” newsletter writes that the recent pullback could be due to a “build-up in leverage which could have triggered a liquidation”. She further added: “This suggests that the drop is unlikely to be long-lasting, as recent support as well as derivatives positioning points to a bias to accumulate”.

However, some analysts have maintained a cautious stand considering the recent US regulatory crackdown in the crypto space.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.