The cryptocurrency market is on the verge of a new collapse. The experts explained in which case an end to attempts to restore quotes will be put to rest and what will happen if the price of bitcoin falls below $ 30 thousand?
On Monday, May 31, the bitcoin rate rose above $ 37 thousand, after which it fell. Now the first cryptocurrency has recovered its positions and is trading again at the level of $ 37 thousand, over the past day it has risen in price by 4%. The situation remains unstable, and investors fear a new drop in quotations to $ 30 thousand and below, which will also lead to a collapse of altcoins.
The price of bitcoin is stuck between $ 30K and $ 40K, and getting out of this range promises to end the tug-of-war, showing what awaits the crypto market in the coming weeks or even months, according to Janis Kivkulis, lead strategist at EXANTE.
According to him, it is worth looking towards the regulators. They can both finally finish off the consolidation of the market, and make it clear that the events of the past weeks are the maximum point of fear, and then the situation will gradually level out.
“The calm now is a period when the market spring is compressed, promising to shoot in one direction. Bitcoin’s inability to develop growth above $ 40K will put an end to attempts at recovery. If it succeeds, a lot of speculative money may come to the market, ”explained Kivkulis.
The beginning of the working week shows that institutions are not ready for a sharp sale, noted the head of the SixNines data center Sergey Troshin. If at the weekend the bitcoin price fell below the important support level of $ 35 thousand, then on the first working day the price tends to $ 37 thousand.
There is no fundamentally negative news background yet, US President Joe Biden announced a large-scale stimulus plan, Troshin recalled. He stressed that such a policy of the US authorities will continue to increase the base value of limited supply assets, the most famous of which is now Bitcoin.
“The market has gradually absorbed the negative from China, and if there is no new bad news, buyers will probably have enough strength to retest $ 40,000 and overcome this mark. The altcoin market is already demonstrating a confident attempt to grow, ”the expert is sure. He concluded that even if Bitcoin did dip below $ 30,000, there could be many buyers entering the market waiting for the right moment to buy at a deep discount.
