Bitcoin is falling again, breaking below the all-important $ 30,000 level that traders say could lead to more losses

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The slump in Bitcoin continued Tuesday morning as the leading cryptocurrency fell below important levels and is trading at its lowest price since January.

Bitcoin is down 8% to $ 29,674.25, according to Coin Metrics. Traders had warned that a break below $ 30,000 could result in further losses.

Technical analysts had seen the $ 30,000 level on the charts as a major support level after the cryptocurrency fell almost to that low during its May crash. The analysts who study charts to make buy and sell decisions believe the next level to look for support could now be as low as $ 20,000.

Bitcoin price threatens to turn negative for the year now that it is nearing the $ 29,000 mark.

Galaxy Digital CEO Mike Novogratz said on CNBC’s “Squawk Box” that Bitcoin may still bounce back after Tuesday’s move, but there has been a significant drop to the next level of support.

“$ 30,000, we’ll see if it holds that day. We could drop below it for a while and close above it. If it really breaks, $ 25,000 is the next big level of support,” Novogratz said. “Look, I’m less happy than $ 60,000, but I’m not nervous.”

Bitcoin struggled to regain its highs from the beginning of the quarter. After some market-moving tweets from Elon Musk about Bitcoin-related environmental concerns, it fell dramatically in May, and further declined in early June on fears about the use of cryptocurrency in the Colonial Pipeline ransomware attack.

It has since been on a roller coaster ride, battered by a barrage of headlines from China, where regulators placed new restrictions on energy-intensive mining and ordered financial institutions like Alipay to stop doing business with crypto companies. The price briefly hit $ 40,000 last week and fell again on Monday.

With Tuesday’s losses, Bitcoin is down about 54% from its all-time high of more than $ 64,000 in mid-April, taking other cryptocurrencies with it. Ether is down 8% and Dogecoin is down more than 16%.

The cryptocurrency market has seen significant setbacks before, with Bitcoin dropping about 80% from its late 2017 highs at one point. Professional crypto investors have warned that the space should continue to be volatile for years to come.

“The only guarantee in the cryptocurrency space is volatility, and we obviously have that right now,” Katie Stockton, founder of Fairlead Strategies, told CNBC. “This is not new, we’ve had days like this, it’s just about navigating this noise.”

Novogratz also noted that despite previous setbacks, crypto market infrastructure is only getting more mature, which has added more institutional support over the past year, with large hedge fund managers, pension funds and banks moving into crypto while registered investment advisors look for ways to attract clients to one Way to get in touch with cryptocurrencies that is compatible with their current workflow.

Bitcoin price rose nearly 500% between mid-September last year and its peak in April. Despite the recent decline, the cryptocurrency is still up around 150% over the past 12 months.