Cryptocurrencies: Bitcoin value in free fall as recent gain vanishes

*Market strategists caution investors that a break below the key $30,000 level could spell trouble in the cryptoland

Emmanuel Akosile | ConsumerConnect

Bitcoin started off the week on the backfoot after a recovery over the weekend proved fleeting.

The largest cryptocurrency dropped as much as 6.3 percent Monday, July 5, 2021, and was trading at $33,656 as of 3:15 p.m. in London, United Kingdom (UK), agency report said.

It was learnt the strategists have cautioned that a break below the key $30,000 level could spell trouble, while a move toward or above $40,000 is seen as heralding further gains.

Report indicates that Bitcoin lost almost 50 percent from its mid-April high amid questions about its energy consumption sparked by Tesla Incorporated’s Elon Musk, as well as a clampdown from China.

Even at that, its value has nearly quadrupled in value over the past year, report stated.

Experts said that exuberant rallies and quick drawdowns are not uncommon for Bitcoin and other cryptocurrencies.

A study of recent ups and downs suggests another crypto slump is approaching, with prices trending lower or stagnating, according to report.