Investing.com – Bitcoin remains unable to hold above $30,000 after another attempt above this key threshold yesterday, while posting no major breakouts.
After peaking at $30,666 yesterday morning, the in fact declined to a low of $29,868 last night, respecting the narrow range ($28,600-$30,750 approximately) that has prevailed for a week.
In the event of a break below the $28,600 zone, no significant support can be spotted before the 2022 annual low at $26,600. Then, it is directly the major psychological threshold of $20,000 which will be the next key support.
On the upside, many obstacles stand in the way of Bitcoin, with in particular a short-term downward trend line visible since May 10, and potential resistances around $31,500 and $32,650, outside the upper limit of the current channel at $30,750.
Weakens it and weighs on Bitcoin
Regarding the factors influencing the price of Bitcoin, it should be noted that the US stock exchanges rose sharply yesterday, with in particular a close of the price up almost 2%, which did not seem to support the cryptocurrency too much, in part as futures contracts then turned lower in the face of some bad post-market news, with Snap (NYSE:) stock notably plunging 30% after CEO Evan Spiegel warned in a memo to employees that the company was going to miss its own revenue and adjusted profit targets for the current quarter.
The Nasdaq futures, strongly correlated to Bitcoin in recent weeks, are indeed down 1.44% at the time of writing this article.
Risk of Bitcoin falling to $8,000 according to Scott Minerd
As for the latest interesting statements about BTC, Scott Minerd, Chief Investment Officer of Guggenheim, highlighted yesterday during an interview with CNBC on the sidelines of the Davos Forum the importance of the $30,000 zone for the cryptocurrency.
He has indeed estimated that if Bitcoin breaks the $30,000 threshold for a long time, a fall to $8,000 could be possible:
“When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room downside, especially with the Fed being restrictive,” he said.
This would represent a drop of around 70% from current prices, while Bitcoin has already fallen around 60% since its November 2021 high near $70,000.
“Most of these currencies, they’re not currencies, they’re junk,” he said, adding that despite that, “I don’t think we’ve seen the dominant player yet in the crypto” implying that a crypto could dethrone Bitcoin.