Bitcoin Weekly Gains Reversed, Falls Below $30K Mark

Paigambar Mohan Raj
Source: Pixabay

The market’s positive turn has proven to be a fluke as Bitcoin (BTC) seems to have lost the gains it made this week. The original cryptocurrency has dropped below the $30,000 mark today and is inching dangerously close to entering the reds.

Bitcoin (BTC) fell for the ninth week in a row last week, and bears have a good chance of extending their losing run if the top cryptocurrency stays below $29,454 on Sunday.

As recently as Tuesday morning, Bitcoin (BTC) was trading for over $32,000 as markets reacted to China’s easing of COVID-19 restrictions and the slim chance that the US Federal Reserve would ease its monetary hawkishness much later this year. By early Wednesday, all of that good faith had vanished, with investors reverting to the risk aversion that had characterized their actions for most of the previous eight months.

Apart from Bitcoin, Ethereum (ETH), which was trading at over $1,800 at the time, was also down over 7%. Luna Classic (LUNC), the replacement moniker for the original LUNA on the Terra protocol, fell 61% at one time. SOL and ADA both fell by around 12%, while DOT fell by about 9%.

Joe DiPasquale, the CEO of crypto fund manager BitBull, while speaking to CoinDesk, said,

“Bitcoin’s price action today is not entirely surprising […] Not only is it facing pressure from traditional markets, it has also been struggling to breach the resistance zone between $31K-$32K, resulting in a breakdown from the range it set over the weekend.”

Bitcoin (BTC) ended May in the negative, despite outperforming altcoins, and historically brings a good month. This indicated investors’ choice of the least risky digital asset. Nonetheless, BitBull’s DiPasquale was pessimistic about Bitcoin’s ability to soon recover. He stated,

”Moving forward, Bitcoin will need to see significant buying activity and a major sentiment shift for any hopes of a quick reversal.”

At press time Bitcoin (BTC) was trading at $29,891.76, down by 5.7% in the last 24 hours, and down by 22.5% in the monthly charts.