Bitcoin continued its volatile streak on Tuesday, starting the day with a tumble below the key $30,000 level and then a rally completely back into positive territory. It briefly turned negative for 2021 at one point Tuesday before recovering.
Near its low of the day, bitcoin fell more than 11% to about $28,911, below the $29,026 level where it ended 2020, according to Coin Metrics. The cryptocurrency then bounced and was last down 0.13% to $32,444 on the session, according to Coin Metrics.
Technical analysts had been watching the $30,000 level as a key support level on the charts after the cryptocurrency had fallen to near that low during its May crash.
Galaxy Digital CEO Mike Novogratz had noted on CNBC’s “Squawk Box” Tuesday morning that bitcoin could still rebound after the early decline and if it didn’t recover, there was significant downside to the next support level.
“Thirty-thousand, we’ll see if it holds on the day. We might plunge below it for a while and close above it. If it’s really breached, $25,000 is the next big level of support,” Novogratz said. “Listen, I’m less happy than I was at $60,000, but I’m not nervous.”
Bitcoin has been struggling to reclaim its highs from earlier in the quarter. It fell dramatically in May following some market-moving tweets by Elon Musk about bitcoin-related environmental concerns, and then even further in early June around fears of the cryptocurrency’s use in the Colonial Pipeline ransomware attack.