Bitcoin lives up to its volatile reputation after struggling above $ 30,000.
Bitcoin is battling its latest crash that has fueled fears of a mass liquidation after the world’s largest token broke below $ 30,000.
The virtual currency rose up 5.8% to $ 33,821 in the market on Wednesday – a day after a dramatic drop it briefly swept gains for the year.
“The fundamentals are sound and there is too much negativity in the price,” said Felix Dian, who runs a cryptocurrency fund at MVPQ Capital in London. “Derivatives data, including future retrocession, tells us that there is a strong short base at the moment, making any lower leg unlikely to be durable as the shorts tighten.”
Over the past month, Bitcoin has been trapped in a mid-$ 30,000 range, suggesting that enthusiasm for digital assets is starting to fade.
Regulators are also increasing control of the industry. China’s latest broadband came on Monday, when the nation’s central bank said it had convened officials of major financiers and even AliPay to reiterate a ban on cryptocurrency services.
Even so, crypto-related investment products continue to be put into operation. The Bitcoin Fund listed on the Nasdaq Dubai exchange on Wednesday, the first of its kind to trade in the Middle East. The fund traded 11% off the reference price.
“After the amount of focus on the Armageddon digital level of $ 30,000.00, I suspect that smart money has shifted its stop losses,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte. “At just shy of $ 34,000.00 now, he probably endured the storm at low pressure.”
He cites levels below $ 28,000 as a trigger for a mass exodus from Bitcoin.