Bitcoin is sinking below $ 34,000 as sales break into momentum in early January | Currency News Financial and Business News

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  • Bitcoin sank as low as $ 33,412.72 on Wednesday as investors continue to take profits from the cryptocurrency’s massive rally.
  • The ticket reached a record $ 42,000 earlier this month before momentum stopped.
  • Analysts see $ 34,000 as a key support level for the token, while a move above $ 40,000 could revive a bitcoin rally.
  • Watch bitcoin trade live here.

Bitcoin fell below the key $ 34,000 level on Wednesday as sales continue to drag the largest cryptocurrency below key support levels.

The ticket slipped as low as $ 33,412.72 before matching some losses. Bitcoin traded at $ 34,295.70 at 11:45 am ET Wednesday, down roughly 7.8% from 24 hours ago. The cryptocurrency has fluctuated around the $ 35,000 level in recent trading days as momentum from its recent rally stands.

Bitcoin climbed to a record low of $ 42,000 earlier this month as institutional and retail investors alike piled into the cryptocurrency market. The rapid rise of the ticket quickly surrendered to profit and since then prices have struggled to rise back above $ 40,000. Still, the cryptocurrency is sitting about 16% higher so far.

Strategists have considered the $ 40,000 level crucial to bitcoin’s next rally. JPMorgan strategist Nikolaos Panigirtzoglou said in a note on Friday that investors will likely continue to leave their bitcoin positions unless the token retails the support level. Flows into the Grayscale Bitcoin Trust and futures contracts can be early indicators of whether such support can be reached, he added.

Read more: Michael Saylor has invested over $ 1 billion of MicroStrategy funds in Bitcoin. The Bitcoin whale turned software CEO explains why he is making such a huge bet on the digital asset.

Looking lower, analysts are considering $ 34,000 as the next floor for bitcoin prices. While the ticket held that level Wednesday morning, continued losses could accelerate outflows.

“Breaking this could be a concern in the near term, with $ 33,000 then looking pretty fragile,” said Craig Erlam, senior market analyst at Oanda Europe, adding $ 30,000 is “the only level that really important. “

The sales come as more financial sector leaders warn of unreasonable exuberance in the cryptocurrency market. Billionaire investor Mark Cuban recently likened a bitcoin rally to an “internet stock bubble” in the late 1990s.

Janet Yellen, President Joe Biden’s nominee for Treasury Secretary, said Tuesday that legislators should “curtail” the use of cryptocurrency on concerns that the tickets are funding illegal activities.

Elsewhere in the crypto market, Ethereum sank 8% after surging to its highest level on Tuesday. While bitcoin has seen the largest trading activity in recent months, its growing popularity has picked up other popular cryptocurrencies.

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