Bitcoin (BTC) Tanks 7% Under $30,000, Risks of Further Correction Still Alive

UTC by Bhushan Akolkar · 2 min read
Bitcoin (BTC) Tanks 7% Under $30,000, Risks of Further Correction Still Alive
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Bitcoin loses steam once again following a poor show on Wall Street on Monday. Selling pressure comes just ahead of the US releasing its inflation numbers this week ahead.

The Bitcoin (BTC) price movement and volatility recently have made life hell for traders recently. On Tuesday, June 7, the BTC price crashed by over 7% giving up all its early week’s gains and slipping under $30,000 once again.

Bitcoin has been showing volatile price swings in the range between $29,000 and $32,000. During the last month of May, Bitcoin went through a brutal market correction eroding more than $120 billion of investors’ wealth. In a note to investors, Adam Farthing and Collin Howe of crypto liquidity provider B2C2 wrote:

“This market is languishing. Without a catalyst to the upside, current sentiment is likely to keep prices rangebound, with some clear and immediate risk of a break lower.”

Tuesday’s decline came following a jittery Monday in the U.S. equity market. The markets started on a positive note on Monday, however, all three U.S. stock indices gave up gains later in the day. Furthermore, a jump in the Treasury Yield also raised concerns that rising borrowing costs could lead to a recession. This was bound to put further pressure on Bitcoin and other risk assets.

Although Bitcoin has been trading in this tight range, BTC funds witnessed net inflows last week. As per the Coinshares report notes:

“Bitcoin saw inflows totalling US$126m last week, bringing total inflows year-to-date to just past the half a billion mark at US$506m. Short Bitcoin saw inflows too, totalling US$1.3m last week”.

Further Correction for Bitcoin (BTC)?

As we know Bitcoin (BTC) has been showing weakness on the technical chart. The world’s largest crypto is likely to witness further selling pressure as the U.S. is set to release its inflation data for May ahead of this week.

During the month of April, inflation showed some signs of cooling. It would be a welcome sign if it continues to drop. However, if the inflation numbers are high, the Fed will initiate steps toward increasing the interest rates using the markets lower.

As per popular crypto analyst @SmartContractor, Bitcoin has formed a bear flag structure and it could see further capitulation below $24,000 which could serve as a buying opportunity.

It will be interesting to see how Bitcoin performs going ahead. However, the recent price movement has certainly been traders’ nightmare.

Bitcoin News, Cryptocurrency News, News
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