Bitcoin Slumps as Traders Brace for a Volatile Long Weekend

All the same, Bitcoin was little changed for the week, after a 44% selloff from the April’s peak of $63,000.

More broadly, the threat of tougher regulation continues to be a drag on crypto market sentiment. China and Iran have cracked down on Bitcoin mining operations for using too much electricity and there’s speculation that the U.S. policymakers may increase financial oversight given the market’s growing size and intense volatility.

On a technical level, the key marker is $30,000, said Swissquote’s Ozkardeskaya. A break below that level would be “further affirmation of an extended bear market,” she said.

“Volatility has eased this week, but that probably won’t last entering a long weekend,” Edward Moya, senior market analyst at Oanda Corp., wrote in a note. “Bitcoin’s consolidation phase should continue, but if the $37,000 level breached momentum, it could get ugly fast.”