On January 21, the cryptocurrency market experienced a growing wave of pressure from sellers, and in the last hour, the price of Bitcoin (BTC) fell below $ 30,000 for the first time since January 4.
Now that Bitcoin has lost $ 32,000 and $ 30,000 support, several analysts suggest that the price may test the $ 24,000 support again. A fall theory suggests that institutional investors viewed Bitcoin as a crowded business and decided to make a profit.
As reported by the Cointelegraph, Scott Minerd, chief investment officer at Guggenheim, recently suggested that the price of bitcoin “is likely to peak” in 2021 and may “bounce back to the 20,000 level.”
JP Morgan strategists John Normand and Federico Manicardi also warned that investors using Bitcoin as a “portfolio diversifier are at risk”, as Bitcoin is more of a cyclical asset than a hedging instrument.
This warning seems timely given today’s volatility. While a sell-off may be unbearable for overleveraged investors, a closer look at some of the social activity that took place during the downturn shows that the current volatility cannot be a reversal of the general trend.
In an exclusive comment to Cointelegraph, Eric Saberski, an analyst at TheTIE, noted that “that market dominance has hardly changed during the previous Bitcoin price decline.”
“This means that the sale of this was completely profitable earlier this month, while the recent era of Bitcoin sales pushed further into other cryptocurrencies. Given the daily feeling, the same recent lichens * usually * have the same feelings. We can not see. It is now. ”
Stimulus hopes the shares will hold record highs
Traditional markets continue to strengthen on the prospect of a broad stimulus package from the Biden administration.
The S&P 500 and NASDAQ reached record highs on January 21 and closed 0.03% and 0.82% higher, respectively. Dow also closed the day 0.04% higher.
Among the top 100 coins, the only project that made a noticeable profit, CELO, earned 48.87 percent and traded at $ 3.37. Ether was adjusted (ETH) by 21.28% while Polkadot lost 8%.
The total market value of cryptocurrency is now $ 871 billion, and Bitcoin dominance is 64.3%.