Bitcoin, the world’s largest cryptocurrency, dropped to an intraday low of $ 28,800 at 01:01 UTC on the Bitstamp stock exchange, and lost about 20 percent in 24 hours. The drop came just two weeks after the cryptocurrency hit an all-time high of $ 42,000.
Many factors have led to this new Bitcoin pressure: from whales depositing money to exchanges, to Janet Yellen’s anti-crypto comments and the obvious FUD circulating in the media.
Craig Erlam, chief market analyst at Oanda Europe, told Bloomberg that Bitcoin looks “very vulnerable” at this level:
“THIS LEVEL APPEARS VERY DEFENSE AND A BREAK UNDER THIS IS A BAD NEWS IN A SHORT TERM FOR BITCOIN AND CRYPTOS IN GENERAL.”
Erlam expects Bitcoin to drop to $ 20,000 in the short term because the downward trend is taking over the market:
“It wouldn’t surprise me to see a test of 20,000 dollars without going too far.”
The analyst’s comments support the comments made by Guggenheim CIO Scott Minerd, who believes Bitcoin has already peaked in 2021.
Galaxy Digital CEO Mike Novogratz believes this rally can continue when volatility declines, according to his latest tweet. In addition, SkyBridge Capital’s Anthony Scaramucci urged his followers to hold Bitcoin instead of trading it in front of the “corporate tsunami”:
“A PERFECT INPUT IS THE ENEMY OF A GOOD ENTRANCE. DO NOT TRADE BITCOIN. BECOME A BITCOIN OWNER. BITCOIN IS Just BEGINNING. WAIT UNTIL YOU SEE THE CORPORATE TSUNAMIN DOWN THE LAND. ”
Squanch (@bit_gossip), one of the names closely followed by the local crypto community, also urged investors to remain calm:
“NEVER FIRST FALL OR END… BITCOIN PROVED ITS RETURN BY BROWING ITS OLD SUMMIT IN EVERY DREAM. SO IT WOULD BENEFIT YOU NOT TO BE PANIC. FIXED WITH EXPERIENCE. “