Bitcoin has been consolidating lately, trading between $ 30,000 and $ 40,000 mostly after reaching its record high of nearly $ 42,000 earlier this month.
Today, the world’s most prominent digital currency dropped to as low as $ 31,006.59 around 10 am EST, CoinDesk figures show.
Since then, bitcoin has been stuck in a fairly tight range, additional CoinDesk data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Following these latest developments, several market observers weighed in on bitcoin price movements, offering some technical analysis on the innovative asset.
“There’s strong support at $ 30k,” said Tim Enneking, managing director of Digital Capital Management.
Alex Mashinsky, cofounder, chairman and CEO of Celsius Network, provided similar input, noting there was “significant support at the $ 30k levels.”
Denis Vinokourov, head of research at the London-based digital asset company Bequant, stressed:
“Bitcoin staged a strong bounce the last time it went back to the low $ 30,000s, and there is likely to be another round of dip buying at these levels.”
“This will probably be used as confirmation that the bullish trend is still intact, and catalyses BTC back toward $ 40,000.”
While Vinokourov offered an optimistic outlook for the digital currency, Mashinsky noted that “there is very little support between the $ 24k- $ 30k levels and then the $ 20k levels.”
“If we cut $ 30k with a large enough volume, you will find us revisiting the $ 20- $ 24k levels as I have anticipated many times” before.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also stressed, stating:
“A normal correction may go as low as re-testing the previous high cut at $ 20,000, but we’ve shared support levels with our followers of more bullish patterns that say support should be in the $ 27,000 range – $ 29,000. ”
“Breaking these high volume levels will make re-testing $ 20,000 the most likely route,” he concluded.
Disclosure: I own a small amount of bitcoin, bitcoin cash, litecoin, ether and EOS.