The price of bitcoin has fallen below the $30,000 threshold for the first time since January, as a so-called death cross in the cryptocurrency’s data threatens to push prices downward.
Technical data for bitcoin on 21 June showed it had formed a death cross, a pattern of the token’s moving averages which would predict the beginning of a major downtrend, meaning prices could remain subdued.
Bitcoin fell below the $30,000 mark to $29,943.23 as of 1:30pm BST on 22 June, according to data from Coindesk, representing a dip of 7.59% in the last 24 hours. The cryptocurrency’s value has slumped more than 20% so far in the last month and is now back to the same levels it last recorded at the start of January.
Other cryptocurrencies have also suffered in the latest sell-off. As of the same time frame on 22 June, ether was down 9% in the last 24 hours, while XRP had fallen 20%, cardano had slipped more than 19% and dogecoin more than 25%.
A death cross appears when an asset’s short-term and long-term moving averages cross over one another, following a period where the short-term average was above the long-term. A downtrend in the average price will be confirmed if it continues to stay that way.
Analysis from crypto research firm Quantum Economics showed bitcoin’s price had been trending upwards since October before slowing down its pace in February, causing the token’s short-term moving average to curve downwards.
“Bitcoin’s price had been trending up since October 2020, trading above the 50-day and 200-day moving averages that also sloped up in response,” said analyst Imran Yusof.
“The trend really started to change in April when bitcoin crossed below the 50-day MA,” he said, as bitcoin’s price began to swing more wildly in that time. The token hit its all-time high of $64,829 that month, while also seeing lows of around $48,500.
Since then, bitcoin has experienced several major flash crashes that at one point saw it lose more than 30% of its value in a single day. It has struggled to regain ground, narrowly moving above $40,000 at the start of June.
Cryptocurrencies have been knocked in part because of a crackdown in China on financial institutions doing business with crypto-exposed companies, and on miners in the region.
The People’s Bank of China said on 21 June that it had told banks and financial companies to “strictly implement” notices and guidelines on curbing risks tied to bitcoin, The Wall Street Journal reported.
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