It’s more bad news for Bitcoin values today as the coin dips under $30,000 for the first time in weeks.
Lyllah Ledesma at Coindesk reports on the decline this morning, noting that the last time Bitcoin fell below the mark in question was on June 22, in response to Chinese ban activity on crypto mining in the region (China houses the largest share of BTC mining by nation.)
“The Chinese government … has hardened its stance on crypto trading and bitcoin mining, the energy-intensive process whereby computers process current transactions and are rewarded with new coins,” writes New York Post reporter Will Freuer in retrospective analysis. “Regions in China that were once major homes to the bitcoin mining industry have recently banned the activity and Beijing has instructed financial companies not to offer crypto-related services.”
Now, Ledesma suggests, citing industry analysts, there’s “too much froth” in the market and downward pressure on Bitcoinas a result.
The down side may be limited: Patrick Heusser, head of trading at Crypto Finance AG, suggests as quoted in the article that under $22,000, people will be jumping back into Bitcoin, moving the price higher. That’s not much consolation for traders who saw highs around $65,000 in mid-April, and may have bought in at that time.
Elsewhere at Coindesk, Damanick Dantes indicates industry charts appear oversold, with an RSI oversold indicator signaling weaker bull markets for Bitcoin.
“The bullish divergence, defined by higher lows in the RSI from May 19, failed to encourage buying beyond the $36,000 resistance level,” Dantes writes. “Bitcoin remains in an intermediate-term downtrend which began in April and is seen by the downward sloping 50-day moving average.”
The good news for hodlers is that the Bitcoin infrastructure continues to expand – with Bitcoin ATMs on the street, Bitcoin play-to-earn models in digital casinos and companies still holding their Bitcoin capital reserve assets, Bitcoin is clearly not going anywhere. So do your own due diligence and determine what type of play you want to make for Bitcoin, both short-term and long-term.