Bitcoin Briefly Erases Its Gains For 2021, Breaking A Key Support Level

Bitcoin Briefly Erases Its Gains For 2021, Breaking A Key Support Level
Andrew Rummer

over 2 years ago1 min

Mentioned in story

Bitcoin dropped as much as 12% to $28,824 as of 10:45am New York time on Tuesday, erasing its gains for the year. 

There was no obvious trigger for the decline, but plenty of commentators pointed to China’s continuing crackdown on crypto transactions. 

As you can see on the chart above, the losses dragged bitcoin’s price below a key technical level known as the 61.8% Fibonacci retracement of its September-to-April rally. If bitcoin ends the day below this level – around $30,916 – it would be considered a bearish sign by investors who set store by technical analysis. In theory, the next Fibonacci support level wouldn’t kick in until around $22,895.

Still, perhaps Asian crypto investors will save the day once they awake. After all, bitcoin’s price has climbed on average during Asian trading hours over the course of 2021 – while US trading hours have seen the price decline. 

Chart of bitcoin price during Asian trading hours.
(Source: Morgan Stanley)
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