Recovering around the $34,000 mark after bottoming out at $28,800, analysts warn Bitcoin remains at risk of another sharp drop.
The drop in price comes as Bitcoin and the crypto market have been under pressure from many sides since the beginning of May.
The main reason is China’s efforts to suppress the Bitcoin mining industry and introduce bans on cryptocurrency trading.
Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, Bitcoin bounced back to $30,000 and is now trading in the $34,000 zone.
The strong rebound comes after candidate for the position of Deputy Secretary of the Treasury Department’s Counterterrorism and Financial Crimes Division Brian Nelson announced that if elected, he would prioritize drafting new regulations on cryptocurrency.
However, Élie Le Rest, co-founder of digital asset management company ExoAlpha, warned that with current pressures, Bitcoin could fluctuate between $25,000 and $35,000 in July.
Besides, the downtrend is likely to strengthen as the market usually sees low trading volume in August.
In addition, ExoAlpha investment director David Lifchitz also warned: “It’s too early to tell if this is a ‘bottom’ or just a temporary floor before there are more drops. The lack of a bullish catalyst is the biggest hurdle facing the market right now.”
The altcoin market in the past 24 hours has also been in sharp drops of 10-20%. Ethereum rebounded with BTC, now trading strongly at the $2,000 mark.
The cryptocurrency market cap is currently at $1,351 trillion and Bitcoin dominance is 48.24%.
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