Will Bitcoin fall below US$30,000 in the next few days?

Major cryptocurrencies fell over 15% in this latest onslaught, led by Bitcoin. What’s the immediate outlook according to analysts?

  • Bitcoin (BTC) (BTC) price slumps to a two-week low of US$31,277 on Tuesday (08 June 2021)
  • Other major digital coins - from Ethereum (ETH) to Ripple (XRP) - also lost over 17% of their valuations at the peak of the sell-down
  • Most analysts commented that investors should look out for BTC’s immediate support level at around US$30,000
  • The bullish view, however, sees BTC’s current ‘oversold’ conditions as indicators for a recovery
  • Buy and sell BTC, ETH and other cryptocurrencies with an IG account

What caused the latest crypto sell-off?

Bitcoin’s woes are weighing down the wider cryptocurrency market once again, with the latest sell-off taking down other major digital coins by as much as 20% in the last 36 hours.

BTC saw its price sink to a two-week low of US$31,277, after US investigators said they seized US$2.3 million worth of bitcoin paid as ransom to DarkSide, the cybercrime gang that last month hacked Colonial Pipeline, the country’s largest refined oil pipeline system.

Cryptocurrencies like Ethereum, Ripple and Litecoin (LTC) all lost over 17% of their valuations between Monday (07 June 2021) and Wednesday (09 June 2021).

Prices continue to remain suppressed, with BTC sitting at US$33,493 as at 13:50 SGT on Wednesday.

Could BTC drop to US$20,000?

Analysts say investors should pay attention to the US$30,000 price level for BTC in the near term, which is emerging as an immediate support zone.

William Noble, chief technical analyst of research platform Token Metrics, believes that the support level to watch is between US$30,500 and US$31,000.

‘If that breaks, a move to 24k could unfold,’ he said.

Julius de Kempenaer, senior technical analyst at StockCharts.com, echoed Noble’s sentiments, stating that there is ‘some intermediate support just below 30k’.

However, ‘the real level to watch is the former breakout level at US$20,000, which should provide major support for BTC in case of a drop that far’, he added.

De Kempenaer further cautioned that bitcoin is also ‘currently completing a breakout from a textbook symmetrical triangle’, which he posits points to ‘more downside price action in the near future’.

‘For the time being the trend is clearly down while upside potential is very limited,’ he said, adding that it’s ‘not really an ideal situation to get back into this market’.

BTC's latest decline ‘not a decisive breakdown’

More bullish was Katie Stockton, the founder and managing partner of Fairlead Strategies, LLC, who opined that BTC’s latest decline is ‘not a decisive breakdown’, but that it ‘would become one if we see a couple of weak closes (today and tomorrow) at current levels’.

Stockton clarified that ‘oversold conditions are in place from short- and intermediate-term perspectives’, which gives bitcoin ‘a better chance to find its footing’.

‘Short-term momentum has deteriorated, but not to the degree with which we have a “sell” signal in the daily MACD,’ she was quoted as saying on Forbes.

‘A recovery and subsequent close above the 20-day moving average (MA) would be a bullish short-term development that would clear the path to the 50-day MA,’ she concluded.

Meanwhile, long-time crypto investor Mike Novogratz, who has been dubbed the ‘Warren Buffett of crypto’, believes that the market is currently in a period where it is ‘waiting for a new narrative to arrive that brings the next wave of money’.

He sees the Securities and Exchange Commission’s approval of a bitcoin ETF and the surge of capital as a result of more people buying into options to earn yields on digital coins as potential longer term price catalysts for the crypto market.

Trade Bitcoin, Ethereum and other cryptos with IG

Create an IG account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Cryptocurrency trading

Trade CFDs on cryptocurrencies with IG.

  • No need to own any cryptocurrency
  • Trade on bitcoin, ether, litecoin, EOS, NEO and Stellar pairs
  • Trade on markets that are both rising and falling

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.