In mid-May, the price of the pioneering cryptocurrency rebounded from the USD 30,000 mark. In recent days, the price of Bitcoin suffered a drop of more than 5%, which led it below that level.
In recent days, the price of Bitcoin (BTC) fell below USD 30,000. A drop of 5% leads the main cryptocurrency on the market to drop below that mark for the first time since January.
According to data from CoinMarketCap, in mid-May, Bitcoin reached USD 30,000 during a drop of up to 50% that lasted two weeks. However, the price of the pioneering cryptocurrency rebounded when it touched that level. The cryptocurrency is currently trading at around USD 32,400 and has a market capitalization of more than USD 607 billion, according to CoinGecko.
So far this week, the cryptocurrency has lost more than 16% of its market value, after starting above USD 35,000. This situation confirms the moment of uncertainty that market speculators have been going through. According to analytics firm Glassnode, short-term traders have been selling while investors keep their holdings of Bitcoin.
Although several analysts take a bullish position, Bitcoin is 50% away from its all-time high. In mid-April, the pioneering cryptocurrency reached a price above USD 64,000, according to data from CoinGecko.
In recent weeks, Bitcoin seemed to have gained the USD 30,000 support, which it has touched several times without breaking it. The recent drop in the price of Bitcoin and the confirmation of the “death cross” pattern appear to be turning the outlook bearish.
Hash Rate and Activity on the Bitcoin Network Drop
The price of Bitcoin had been relatively stable for most of the past few weeks. In that period, it was in a range between USD 33,000 and USD 38,000. However, there has been growing uncertainty about the first cryptocurrency in the market.
In recent days, attacks from the Chinese government on Bitcoin miners have increased, affecting this activity in various provinces. Many miners from that Asian country have been forced to disconnect their machines. That has driven the network’s cumulative processing power to reach its lowest levels since last year.
The activity on the Bitcoin network has also declined, reaching transaction averages as low as those of the 2018 bearish market.
At this time, several analysts are optimistic about the near future of Bitcoin’s price. According to Willy Woo, the cryptocurrency would exceed USD 100,000 by the end of the year, even in the worst possible scenario. Meanwhile, PlanB believes that the price of Bitcoin could skyrocket to USD 288,000 per unit.
Although the price of Bitcoin has fallen dramatically, various analysts remain optimistic that it will hit a new all-time high this year. Robert Kiyosaki, the author of the best-seller “Rich Dad, Poor Dad,” recently predicted a drop to USD 27,000. He also said that it will be a good opportunity to buy Bitcoin cheaply to use it as a store of value.
By Alexander Salazar
