Bitcoin falls back below US$30,000 as range-bound trading persists

Bitcoin fell back below US$30,000, sliding along with equities and settling back into the middle of the narrow range where it’s been trading since mid-May.

Tuesday’s 6 per cent drop to around US$29,500 wiped out the previous three days of gains and ended Bitcoin’s second brief break above US$31,000 of the past three weeks. European equities and US futures also fell. Australia’s central bank delivered a bigger-than-expected rate hike to combat rising costs, adding to the risk-off mood in markets. 

Investor concerns about tighter monetary policy and tougher regulations have dueled with optimism that Bitcoin may have found a bottom to keep the token in a tight range around US$30,000. Bitcoin faces “significant resistance” around US$31,500 to US$32,000, according to Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock.

“This market is languishing,” said Adam Farthing and Collin Howe of crypto liquidity provider B2C2 in a note. “Without a catalyst to the upside, current sentiment is likely to keep prices rangebound, with some clear and immediate risk of a break lower.”