Down 7% over the week, will Bitcoin find a floor at US$30,000?

Forecasting crypto prices is far from science. But that doesn’t keep the crypto pundits from trying.

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The Bitcoin (CRYTPO: BTC) price slid lower again over the past 24 hours, falling 1% to US$31,826 (AU$43,008).

That brings Bitcoin’s losses to 7% since this time last week. And it leaves the world’s biggest crypto with a market cap of US$597 billion, according to data from CoinDesk. That’s still a sizeable figure. But it’s a far cry from the nearly US$1.2 trillion market cap it claimed at its peak in mid-April, when it was trading for a record high US$64,829.

With Bitcoin down 51% since then, some crypto analysts are forecasting it’s approaching strong support.

Will Bitcoin find a floor at US$30,000?

I’d rather try predicting next year’s weather than the price of Bitcoin next week. And I’d probably have more luck at it.

But when it comes to where the digital token is likely to head from here, there are plenty of industry experts toiling away to bring us the answer. And the latest word on the street is that US$30,000 could provide a floor for the sliding Bitcoin price.

Aside from 30,000 being a nice round number (humans like numerals that match evenly with the number of fingers we have), some analysts believe options trading activity can shine the light on what to expect next.

As Bloomberg reports:

In options, $30,000 is the most-sold downside strike price for July and August, signaling confidence among such traders that the level will hold, according to Delta Exchange, a crypto derivatives exchange. It “should provide a strong support to the market,” Chief Executive Officer Pankaj Balani said.

Blockdaemon’s CEO, Konstantin Richter, also isn’t overly concerned with Bitcoin’s recent price falls. “If it goes down fast, it can go up fast. That’s just what crypto is,” he said.

Richter said the price would need to go below US$20,000 before shaking out institutional demand, which helped push Bitcoin back into the limelight over the past year.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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