Will Bitcoin Dip Below $30,000 Again Or Is It Onwards And Upwards?

Blockchain, Technology, Smart, Bitcoin, Money

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The S&P 500 saw multiple dips last week, especially on Wednesday, as the index suffered in conjunction with the other key US indices such as the Dow and Nasdaq. The FTSE 100 saw a similar performance last week, with a steady fall starting on Tuesday afternoon and continuing through Wednesday and Thursday. 

On the crypto front, bitcoin dipped below $30,000 on Wednesday, following a push towards $35,000 on Monday. In altcoins, Ethereum hit a convincing all-time high last week, touching $1,467 before a marginal dip to the $1,200s, ending the week at $1,315.

David Derhy

Bitcoin dips below $30,000 and further drops remain a possibility 

After a brief dip, it is now evident that $30,000 is going to play an important level of support. If prices started to decline below $29,500, then we could be in for a fairly heavy correction toward $24,000. It is easy to be bullish on crypto when the market is heading in a positive direction, but I always think it prudent to urge caution. Despite this, bitcoin’s current stability and relatively low volatility compared with other cryptoassets at the moment is positive for the sector overall.

Simon Peters

Stop mechanisms could be a benefit to crypto but antithetical to the concept 

Bitcoin has consistently remained above $30,000 since breaking above on 2nd January 2021 and with this support level now established, in my opinion, it is now time to see some upside. 

But what if there is a considerable drop? A key characteristic of the crypto sector is that, unlike traditional stock markets, it does not have a means of suspending trading on assets that are seemingly in freefall. Which begs the question: should it? Should the sector employ mechanisms that traditional markets can use, such as trading suspension or pumping in liquidity from central banks? Not necessarily. A preeminent benefit of the cryptoasset sector has always been its decentralization, but this opens investors up to additional risks. Volatility and risk is something that people should be taking into account regardless of what they are investing in. 

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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