Bitcoin price fell under $30K as global risk sentiment was hurt by new
Bitcoin’s swing range has declined recently, forming the basis for a powerful exit with a compressed spring effect.
A sequence of increasingly lower highs is a significant selling factor. Given the FOMO nature of cryptocurrencies, a prolonged consolidation is increasingly frustrating for speculators.
The main question now is whether Bitcoin falls to the area near $23.3, where it paused before last Christmas. We cannot rule out that with massive liquidation of margin positions the price will even close the gap at $18k. Overall, such a reversal would be a repeat of the “crypto winter 2018”, opening the possibility for a price collapse toward a “bottom” near $10k, nullify the rally since October 2020.
Despite the amplitude of the crypto market’s swings is much smaller now than in May, the prolonged rise failure indicates that the sharp uptrend is broken, as it was in 2018. Long-term investors may remain bullish, but short-term speculators are clearly trying to leave the market.