Bitcoin drops back to $30K
- The 'obvious and imminent risk' of a breach lower is seen by B2C2.
- According to GlobalBlock, the coin has encountered resistance in the high $31,000s.
Bitcoin retreated below $30,000, slipping alongside equities and falling back into the narrow range it's been trading in since mid-May.
Bitcoin's 6% dip to about $29,500 on Tuesday erased the previous three days' gains and brought the price back below $31,000 for the second time in three weeks. European stocks and US futures both dropped. To battle rising costs, Australia's central bank announced a larger-than-expected rate hike, contributing to the risk-off mood in markets.
Investor concerns over tighter monetary policies and stricter restrictions have clashed with hope that Bitcoin has struck a bottom, keeping the cryptocurrency in a tight range around $30,000. According to Marcus Sotiriou, an analyst at UK-based digital asset trader GlobalBlock, Bitcoin faces "strong resistance" at around $31,500 to $32,000.
In a note, Adam Farthing and Collin Howe of crypto liquidity service B2C2 warned, "This market is languishing." "Without a stimulus to the upside, the present mood is likely to keep prices rangebound, with the risk of a break lower being evident and quick."
As the dollar extended its gains, crypto prices dropped. A spike in Treasury yields fueled concerns that rising borrowing prices could trigger a recession.
US regulators are examining whether Binance Holdings Ltd. broke disclosure rules by selling digital tokens just as the crypto exchange was getting off the ground five years ago, according to Bloomberg on Monday.
According to B2C2, markets will continue to look for signs that current ranges — $28,000 to $32,750 in Bitcoin and $1,700 to $2,100 in Ethereum — may break. At 12:40 p.m. in London, Ether, the second-largest currency, had fallen as much as 7.3% to $1,747.
In a trading period where all the main cryptocurrencies were in the red, Solana lost as much as 11 percent, while Avalanche fell as much as 9.3 percent, according to Bloomberg data.