Bitcoin turns positive on day in wild session where it briefly dropped below $30,000

Bitcoin continued its volatile streak on Tuesday, starting the day with a tumble below the key $30,000 level and then a rally completely back into positive territory. It briefly turned negative for 2021 at one point Tuesday before recovering. Near its low of the day, bitcoin fell more than 11% to about $28,911, below the $29,026 level where it ended 2020, according to Coin Metrics. The cryptocurrency then bounced and was last down 0.13% to $32,444 on the session, according to Coin Metrics.

Technical analysts had been watching the $30,000 level as a key support level on the charts after the cryptocurrency had fallen to near that low during its May crash. Galaxy Digital CEO Mike Novogratz had noted on CNBC’s “Squawk Box” Tuesday morning that bitcoin could still rebound after the early decline and if it didn’t recover, there was significant downside to the next support level. “Thirty-thousand, we’ll see if it holds on the day. We might plunge below it for a while and close above it. If it’s really breached, $25,000 is the next big level of support,” Novogratz said. “Listen, I’m less happy than I was at $60,000, but I’m not nervous.”

Novogratz also noted that despite previous pullbacks, crypto market infrastructure is only becoming more mature, which has helped usher in more institutional support over the past year, with major hedge fund managers, pension funds and banks jumping into crypto, while registered investment advisors seek ways to get clients exposure to cryptocurrencies in ways that are compatible with their current workflow and wait for custody banks to introduce crypto services.

The price of bitcoin rose nearly 500% between mid-September and its April peak. Even with the recent decline, the cryptocurrency is still up more than 200% over the past 12 months.

Bitcoin turns positive on day in wild session where it briefly dropped below $30,000, CNBC, Jun 23