leadf
logo-loader

Bitcoin slips again as risk and pressures mount

Downside risk for the currency to US$25,7000 suggest chartists

Bitcoin

Bitcoin had another tough day as traders fretted over the US$30,000 level and whether dipping below it would spark an even bigger sell-off.

Close to the end of trading in London, the crypto was down 4.3% at US$29,495 with other prominent cryptocurrencies such as Ethereum and Ripple also under pressure.

Bitcoin hasn’t been this low for weeks having been as high as US$65,000 in April.

“As crypto holdings dropped, demand for government bonds have risen, with yields on 10-year treasuries falling to their lowest level in five months,” said Susannah Streeter at Hargreaves Lansdown.

But there might be more to the dip than just rotation in a better performing asset, warnings from financial watchdogs and the risk of digital currencies being launched by governments are also dampening the mood alongside the crypto's reputation.

“The intensifying crackdown in some parts of the world, with Indonesian authorities destroying bitcoin mining factories using energy illegally, has again shone the light on crypto as a magnet for criminals,’’ Streeter added.

Chartists, meanwhile, are having a field day with Bitcoin’s volatility.

According to FXStreet, a fibonnaci retracement [bounce back from an oversold position] might see the crypto recover to US$35,618.

On the downside, the next selling trigger is US$28,068, it says, after which it is US$27,383 and from then a slide towards US$25,700.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Catenae Innovation to exhibit Skillflow at the UK Construction Week with...

Catenae Innovation PLC (AIM:CTEA, FRA:NZS0)'s (LON:CTEA) Guy Meyer talks to Proactive London’s Katie Pilbeam about exhibiting at the UK Construction Week with Construction Helpline.  It is the UK's largest construction event, taking place at the National Exhibition Centre, Birmingham, from...

13 minutes ago

2 min read