Bitcoin's Key Price Level at Risk. Where It Could Find Support.

Bitcoin
and other cryptocurrencies were declining Tuesday, with digital assets lagging the stock market and at risk of falling through key price levels as momentum behind cryptos faded.

The price of Bitcoin has fallen about 1% over the past 24 hours to just above $30,000, having fallen under that psychologically important level in earlier trading and weakening below $29,700 at points. The largest crypto remains right at the bottom of a range between $30,000 and $31,000 that has dominated for most of the past month.

“In contrast to the positive performance of stock indices, which updated multi-month highs, the first cryptocurrency rolled back below $30,000 on Monday,” said Alex Kuptsikevich, an analyst at broker FxPro.

Indeed, while the stock market has marched higher in recent days—with the
Dow Jones Industrial Average,

S&P 500,
and
Nasdaq Composite
all notching gains—cryptos have lagged, losing momentum from recent positive catalysts.

Bitcoin jumped back above $30,000 in June after new applications for spot Bitcoin exchange-traded funds, and after a partial win in a milestone court case between token issuer Ripple and the Securities and Exchange Commission provided a tailwind last week.

Nevertheless, momentum appears to be fading, with the technical market outlook weakening as well. Prices could fall further before finding support.

“Bitcoin remains wound up in a tight consolidation phase below long-term resistance,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “A pullback looks increasingly likely, with initial support at the rising 50-day moving average around $28,700, below which long-term secondary support is at former resistance near $25,200.”

Beyond Bitcoin,
Ether
—the second-largest crypto—dropped more than 1% to $1,900. Smaller tokens or altcoins were weaker, with
Cardano
and
Polygon
slipping 3% each. Memecoins exhibited more of the same, with both
Dogecoin
and
Shiba Inu
shedding 2%.

Write to Jack Denton at [email protected]

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