Bitcoin price continued to remain below $35,000-mark on Tuesday amid further crackdown on the cryptocurrency industry across the world. The world’s largest cryptocurrency saw a marginal increase of 0.74% on a day, to $34,673.09 at 0730 hours IST on June 29 on coinmarketcap.com Index. Over the weekend, Britain’s financial regulator said Binance, one of the world’s largest cryptocurrency exchanges, cannot conduct any regulated activity in the United Kingdom. The regulator also issued a warning to consumers about the platform and advertisements promising high returns on cryptoasset investments. The regulatory scrutiny dragged Bitcoin to a low of around $30,200 on Sunday before the rebound. China also renewed its recent crackdown on cryptocurrencies in the recent past with shutting down mining activity in Sichuan province. Analysts believe that there could be more stringent regulations on cryptocurrencies across the world in the near future.
“Bitcoin has been on a volatile price spree over the last few days. Bitcoin, last week yet again resisted around the $41,000-mark and plunged almost 30% and made a low of $28,800. On the daily time frame, the asset post making a ‘spinning top’ candle at the recent high has made ‘lower top lower bottom’ formation," said ZebPay trade desk.
“This week Bitcoin is trying to take support at its five month low around $28,732 levels as the candle made a longer lower shadow indicating some buying at these levels. If it sustains the support level then we can expect some relief rally up to $38,000 to $40,000, else, we may see further downfall and the prices may slide to the next support level of $22,000," said ZebPay trade desk.
The global cryptocurrency market cap on Monday rose 2.79% day-to-day to $1.41 trillion, according to coinmarketcap.com. Ether jumped 6.62 per cent on a day to $2,110.44 on Tuesday.
“A huge psychological boost to the crypto enthusiasts came when Bitcoin rebounded off a crucial support zone and jumped higher in the last 24 hours. The positive sentiment across the board supported by good volumes suggested that the crypto enthusiasts are out of the weekend panic. In the recent past, we have witnessed that every dip is being bought into by the investors. It suggests that investors are bullish on cryptocurrencies in the longer term," said Edul Patel, chief executive officer and co-founder, Mudrex, a global crypto trading platform.