Bitcoin price rallies after felling below $30,000 for the first time since January, sparking a panic sell

Bitcoin price has just gone through hours of extreme volatility, with one point plunging to $29,000 but bouncing back above $33,500. At the time of writing, BTC is trading at $33,905, recorded a 4% gain over the past 24 hours.


BTC/USD 4-hour chart | Source: TradingView

Bitcoin price bounce back after falling below $30,000

Bitcoin rallied sharply to bounce off this year’s lows at the end of the previous session, amid continued volatility as China’s central bank tightening its grip on the cryptocurrency. Just a few hours earlier, BTC broke through the bottom of $30,000 to plunge to $28,600, the lowest level since January.

However, after suffering these losses, BTC bounced back, rallying more than 15% to reach almost $34,000.

Data from Santiment also indicates that the continued downturn:

“#Bitcoin’s token circulation vs. market cap (NVT) has picked up steam the last couple of days as capitulation signals increased and #FUD maximized after prices dropped to $29.2k. For now, our June data to date has correctly signaled the continued downturn.”


Source: Santiment/Twitter 

The drop in Bitcoin also puts constant pressure on some altcoins. In which, Ether fell 8% and Dogecoin fell more than 16%. Ether is currently trading around $2,000, having previously dropped to just $1,700, a 1-month low.

Two names trying to weather the volatility of the cryptocurrency market today are Livepeer (LPT), which posted a 15% gain, and Celo (CELO), which saw its price increase by 9%. The overall cryptocurrency market cap now stands at $1.337 trillion and Bitcoin’s dominance rate is 47.4%.


Source: Coin360

Despite the recovery, the outlook for Bitcoin remains tilted to the downside. Because Bitcoin’s drop below $30,000 is a bad sign. The break of key structural support is a sign that in the long run Bitcoin could fall further after China tightens its regulation on a large scale.

Technical analysts see the $30,000 mark as a key support on the charts after Bitcoin dropped near this level during the May crash. Analysts say the next key level will be is $20,000.

Bitcoin and other cryptocurrencies have gained support from financial institutions over the past two years, as hedge funds and large banks have entered the market. Bitcoin price has increased by nearly 500% from mid-September last year to its peak in April. Even with the recent drop, the coin is still up around 150% over the past 12 months. However, that does not mean that the turbulence in the cryptocurrency market will calm down. Professional crypto investors have warned that space will continue to face major hurdles in the years to come.

Cryptocurrencies are not currently widely accepted legally, so trading them carries many risks and investors should be cautious when deciding to trade.

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