The price of Bitcoin fell to its lowest level in more than a month today, as investors’ risk aversion, continued to weigh on the cryptocurrency, despite evidence of modest new interest in the coins.
On Monday, the biggest cryptocurrency lost 4.2 percent to $38,580. Ether, the second-largest cryptocurrency, fell 4.7 percent to $2,902. According to CoinGecko’s pricing, the global crypto market’s worth has declined around 4% in the last 24 hours to $1.9 trillion.
According to technical charts, despite Bitcoin’s recent plunge, it is “not close to an oversold reading,” and near-term support at $35,000 is unlikely to hold, according to John Roque, a technical analyst at 22V Research. He stated, “We continue to expect it will go to the $30,000 level.”
Bitcoin, like risk assets, has been struggling in recent months. As the Federal Reserve began raising interest rates in response to stubbornly high inflation, it has mostly traded in a band of $35,000 to $45,000 this year. According to statistics from analytics company Glassnode, Bitcoin interest has remained sluggish, with little growth in the coin’s user base and no fresh demand.
Many Bitcoin bulls have not been deterred, with predictions of $100,000 and even higher still being made. However, with price predictions between $500,000 and $1 million floating about, “it’s difficult for us to imagine sentiment stays anything but positive.” And with a chart like this, it’s awful news,” Roque said.