“Below this there is little technical support until the low-20ks, where margin calls kick in,” Malcolm wrote.
Bitcoin’s Relative Strength Index is now at 22, showing that it’s at its most oversold since January. The coin now needs to hold $28,000. A break below that level could start a new wave of selling.
Meanwhile, Coinbase Global Inc. shares and bonds fell to new lows Wednesday, signaling investor skepticism about the prospects of the crypto exchange in a bear-market. The company reported lower-than-expected revenues yesterday, and warned trading volume and monthly transacting users in the second quarter is expected to be lower than in the first.
Piper Sandler‘s Johnson says that’s another concern for crypto investors right now. “It’s the largest exchange here in the United States and they just turned a loss,” he said, adding that Terra’s troubles are all “snowballing in crypto land.”
Still, a lot of crypto investors, cognizant of the fact that Bitcoin has gone through a boom-and-bust cycle before only to recoup losses over and over again, are preaching patience.
“Ultimately every investor needs to size positions based on their risk level and time horizon,” said Alex Tapscott, managing director of the digital asset group at Ninepoint Partners. “We believe Bitcoin will recover and that we’re still in the early stages of this new internet of value. Keep calm and HODL.”
-With assistance from Sidhartha Shukla and Kenneth Sexton.
This article was prrovided by Bloomberg News.