Bitcoin fell again on Tuesday, this time below the $ 30,000 critical level.
This award has been recognized by institutional investors as a key level of support.
Despite a slight market rebound on Tuesday, the move in bitcoin is driven by investors seeking to mitigate risk with the spread of the Covid delta variant, putting additional pressure on the broader market.
Other cryptocurrencies also fell on Tuesday. Ether, Litecoin and Dogecoin spent the day in the red.
In an interview with CNBC’s Trading Nation, Delano Saporu, founder of New Street Advisors, said he expects more pain for bitcoin.
“I think you probably have more disadvantages, maybe about $ 22,000. [to] The range of $ 17,000 per bitcoin goes back to December 20 of last year, ”he said on Tuesday. However, “from there, I think there will be growth,” he said.
While short-term traders who have invested in bitcoin at an all-time high are now in pain, Saporu believes the cryptocurrency is paying off for long-term investors.
“A lot of people who speculated when the price really was the highest, and they jumped in at that moment, really wanted to make a quick profit,” he said. “Then they were wrong. “
In the same interview, Fairlead Strategies founder Katie Stockton said bitcoin investors could feel the pressure for a little longer.
“This marks the bottom line for the consolidation phase,” she said, referring to the decline in value below $ 30,000. “With that, he becomes what I call ripe for a shake-up. ”
A shake-up is a “false shutdown” when the price of an investment falls below a support level, Stockton said. After this drop, the price could return quickly once the market “shakes up these weak bitcoin holders,” she said.
If Bitcoin bounces back this week, she said, it would be a sign that this sale was temporary.
In addition, his model indicates that Bitcoin is growing. She pointed to a secondary support level around $ 27,000, which will be important in identifying her long-term uptrend.
Stockton added that she needs to see momentum to prove that this phase of consolidation is coming to an end. She predicts that this will happen when Bitcoin breaks the 50-day moving average, which is around $ 34,500 at current levels.
“This will be a significant turning point for Bitcoin,” she added.
Disclosure: Delano Saporu holds bitcoins.