The most popular of the cryptocurrencies, Bitcoin, loses the support of 30K for the second time since June 21. There are a variety of elements that could be behind this significant fact. However, the most likely seems to be the nervousness of world markets due to the complications that the Delta variant of the Sars-Cov-2 could bring.
In some countries, governments are taking action, applying new measures to contain the virus. In others, there are strong rumors that these measures will be applied again. All this heralds a new stagnation in trade and the world economy in general. Against this, the markets suffered losses in the last day.
As expected, the price of cryptocurrencies also reacted to this widespread panic. It should be taken into consideration that, although Bitcoin functions as a store of value, this operation is long-term. In the short term, this digital asset is not exempt from suffering the effects of traditional market volatility. Proof of this was the fall of March 2020 before the official announcement of the pandemic by the WHO.
Now that Bitcoin loses the 30K support, what will happen to its price?
One aspect to take into consideration is that, now that Bitcoin loses the support of 30K, what will happen to its price. It is important to note that the last time it lost this support last June, multiple expectations were created. However, its price recovered to test the 36K resistance again..
According to the EQI portal, there is solid support at $ 28,200. If it remains above it, they explain, a substantial rally in the price of the pioneer cryptocurrency should be expected to $ 34,000. A similar situation occurred during 2020 after the aforementioned fall in March. At that time, the price of Bitcoin, although it fell along with the entire market, was the first to recover rapidly.
At the time of writing, the price of Bitcoin is roughly $ 29,700 per coin. In that sense, it can be said that investors are on the lookout and the next few hours could be crucial.
It should not be forgotten that, despite all the negative news and events that Bitcoin has suffered, it remains positive in 2021. In other words, in 2021, the market value of this digital asset started at 29K. This means that it remains above that margin. Any other asset that was subjected to the level of attacks than Bitcoin, would now be with a value close to zero. This shows the strength and maturity of the queen cryptocurrency.
The exchange price of Bitcoin, loses the psychological support of $ 30,000 dollars. Its new support stands at 28.2K. Will he be able to keep it? Source: TradingView
Other factors behind BTC’s market value decline
Now that the price of Bitcoin loses the important psychological support of $ 30,000, it is important to analyze other factors behind this movement. Before this day, and the price of the oldest of the digital currencies, had been presenting a bearish sentiment. All this was shown with a previous stagnation of its volatility.
Nevertheless, Since last July 17, its volatility began to rise due to the drop in its price. Now, why before this day was the price of the cryptocurrency going down? There are several factors that can be cited to explain this downward price movement.
For several days, the volatility of Bitcoin has increased due to a significant downtrend in its price. Source: The Block
Among them is the fall of the hashrate after the massive disconnections in the People’s Republic of China. It may seem that the worst part of this process is over. Bitcoin’s hashrate, at the time, fell to 58 EH / s. Now it has recovered significantly to 96.9 EH / s. Despite this, it remains well below its historical peak of 192 EH / s. To the latter must be added that the disconnections are still in process China.
Disconnections seem less than new connections, so it could be said that the hashrate is already in the process of recovering. In other words, it is unlikely to fall back to 60 EH / s. Therefore, its influence, although existing, should not be decisive in continuing to push the price of Bitcoin down.
After having recovered significantly to 122 EH / s on July 19, the Bitcoin hashrate again fell to 96.9 EH / s the next day. Source: Coinwarz
Pressures against exchanges
Another factor behind the fact that Bitcoin now loses the support of 30K, is pressure from regulators. Recently, the most important of the world’s cryptocurrency trading platforms, Binance, entered the middle of a great controversy. The financial representatives of countries such as the United Kingdom and Italy, ordered the exchange to stop its operations for not having licenses.
In other nations such as Lithuania, Thailand, the United States or in the Hong Kong area, the authorities issued serious warnings. It turns out that cryptocurrencies are considered “securities” within those nations. This means that, to sell options related to them, you must have respective licenses to trade in securities.
In the United States, for example, selling cryptocurrencies is like selling a house or a car. Consequently, you must have permission and pay taxes for it, something that Binance does not have. To cut a long story short, it can be said that these pressures are already affecting other major exchanges. All of this could have an important influence on the loss of the BTC price support.
What will happen this year?
Although opinions are divided as to the near future of the price of Bitcoin, the analyst of the aforementioned EQI portal is emphatic. He emphasizes that times of great volatility are approaching throughout the market in general and in cryptocurrencies in particular..
In the middle of that stage He explains that the largest cryptocurrency will most likely not drop below 25K any time soon. It should be noted that the latter would be, in his opinion, the worst case scenario.
Also, by the end of the year, considers that the price will return to the natural path of Bitcoin’s behavior, that is, to the upside. In this way, the return to 50K could be witnessed by then.
The reasons behind this is that important institutional players and high-priced investors maintain their positions. Bitcoin buying companies such as Square, MicroStrategy and Tesla itself, have repeatedly announced that they do not plan to sell their balances in that cryptocurrency.
Data to take into consideration
For the second time since June 21, the price of Bitcoin lost the support of $ 30,000. Both times, split analyzes are presented, some of them extremely pessimistic despite the fact that the price recovered last time. of Bitcoin, seems to be at 28.2K. According to EQI, if it remains above it, in the short term, the exchange value of BTC could recover to 34K. The shaking of the markets due to the news of possible measures motivated by the new variant of Covid-19, It also affected cryptocurrencies. That and other variants such as the fall of the Bitcoin hashrate and pressure from regulators, would be behind the current downturn. The Bitcoin hashrate recovered to 122 EH / s last Monday, July 19. In a few hours it dropped back to 96 EH / s. This is because there are new connections in the United States, but in China they continue to disconnect farms to a large extent. Despite all the negative news against Bitcoin, it should be noted that its price remains in positive territory in 2021.