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Bitcoin Fall has strategists who see a possible drop to $ 20,000

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Another bad week for bitcoins could be a precursor to more pain, according to strategists monitoring the cryptocurrency sell-off.

Further price weakness could show the $ 20,000 zone as an insufficient target, according to Oanda Corp., Evercore ISI and Tallbacken Capital Advisors LLC. Bitcoin fell about 2% to $ 33,000 at 11:23 a.m. in Hong Kong and fell about 10% in June.

The largest cryptocurrency is “dangerously close to the $ 30,000 level” amid growing regulatory fears in the United States, and “a $ 30,000 breakout could lead to huge momentum,”

; said Edward Moya, a senior market analyst at Oanda Corp.

Bitcoin fell by about $ 32,000 from its record in April, prompted by reprimand from billionaire Elon Musk for the energy it needs, as well as renewed regulatory measures in China. The ability of US authorities to recover the high-ranking bitcoin ransom has also worsened the idea that it is beyond the control of the government, which is a member of the faith for some of the coin’s supporters.

Evercore technical strategist Rich Ross and Tallbacken Capital Advisors adviser Michael Purves have marked the $ 20,000 zone as a potential key level if bitcoin breaks much lower than it is now.

However, others remain confident in the long run. For example, MicroStrategy Inc. Michael Sailor increased junk sales to $ 500 million from $ 400 million to fund the purchase of more bitcoins. MicroStrategy has emerged as one of the top public cryptocurrency companies.

About a week after the Bitcoin harvest in mid-April, Purves said the bullish case seemed “highly contested.”

“How much lower can it get?” Purves asked in his note Tuesday. “The most obvious answer continues to be a full breakout correction of $ 20,000 – in other words, back to $ 20,000.”

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