Bitcoin Rallies Back Over Pivotal 30000 Price Level

bitcoin 30000 trading price level important chart news image

Tuesday’s trading session began with a continuation of the large sell-off in Bitcoin which had been lingering near 41000 in the prior weeks before selling off to roughly 29000.

However, dip buyers that have been waiting for the chance to scoop up the largest-cap cryptocurrency under 30000 were finally given the opportunity.

Or at least briefly, before Bitcoin (BTC) sprung back over.

The 30000 price area happens to be a support level many are watching, as it holds lows dating back to May 23 and June 8.

With that said, Bitcoin’s main risk continues to be its volatility. Large price swings make it less appealing for institutions that cannot place their clients in such risky investments.

This is especially true given that mainstream institutions still use the archaic buy-and-hold strategy.

As most institutions do not use a risk-management system, we can expect that cryptocurrencies will have to stabilize further before these types of investors join the market.  

On the other hand, one could make the case that recent volatility in the general market can be tied to the crypto space as well. Or, at the very least a further correlation has arisen between Bitcoin and stocks (specifically the S&P 500).

If this is true, we can begin to watch BTC along with the major indices for price correlation or inverse price movement depending on how the space unfolds. 

Going forward, this would be a positive sign for longevity and help further validate cryptocurrency’s presence, making them easier to trade from a risk management perspective. 

Watch Mish cover cryptocurrency basics on Cheddar TV!

Stock Market ETFs Analysis & Summary:

S&P 500 (SPY) 425.46 high to clear.

Russell 2000 (IWM) 221.13 support. 230.95 resistance.

Dow (DIA) 332.68 support.

Nasdaq (QQQ) 342.80 needs to hold as new support area.

KRE (Regional Banks) 63.63 support.

SMH (Semiconductors) 245 support.

IYT (Transportation) 254.65 support.

IBB (Biotechnology) Needs to hold 159 level. 163.63 resistance to clear.

XRT (Retail) Back in a bullish phase with second close over 9.30 the 50-DMA.

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.

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