The six-month rally was wiped out. Bitcoin fell below $30,000 and then rebounded sharply. The V-shaped trend was surprising.

Bitcoin has fallen from a high of nearly $65,000 in mid-April, and has now fallen by more than 50%. Bitcoin continued to decline on Tuesday, falling below the key support level of $30,000, falling to a low of $29,212, and the six-month rally was wiped out. But just when the market was in extreme pessimism, the price of Bitcoin rebounded sharply, and in less than 6 hours, it took a perfect V-shaped trend. As of press time, the price of Bitcoin was $32,065.42, down 4.90% on the day. Not only Bitcoin, other cryptocurrencies have been hit harder. According to Bitpush data, Ethereum fell 5.92%, Dash plummeted 22%, XRP fell 21%, and Litecoin fell 18%.

Matt Maley, chief market strategist at Miller Tabak +, said in an interview with Bloomberg: "Once Bitcoin falls below $30,000, bulls may soon surrender." He believes that even if Bitcoin will change the world in the long run, it does not mean that it cannot fall back to more than a dozen dollars in the short term.

If Bitcoin's support level of $30,000 is really broken in the near future, then it will need to hold the support range of $28,000-28,500. Although this range is very fragile, if it goes further down, it may touch MicroStrategy's cost line. At that time, all the attention of the currency circle may be focused on MicroStrategy. As a "Bitcoin ETF", MicroStrategy's stock price fell by nearly 9% on Tuesday.

The market currently believes that the main reason for the decline is that the People's Bank of China cut off all financial services related to the cryptocurrency market on Monday, strictly prohibiting banks and payment institutions from participating in cryptocurrency transactions. However, considering that the real decline began in early May, the reason cannot be simply attributed to a certain negative news.

There are also voices of whales buying at the bottom of the market during the big drop. Wang Chun, co-founder of F2Pool and founder of Stake.fish, tweeted today: "I bought 1,100 bitcoins in the past few days and will continue to buy in the future."

Mike Novogratz, CEO of Galaxy Digital, told CNBC that the market has seen a lot of liquidations and it is difficult to determine the bottom. He said: "If the market is really broken, $25,000 is the next important support level. Listen, I'm not as happy as I was at $60,000, but I'm not nervous." Novogratz pointed out that the Chinese government's crackdown on cryptocurrencies is the cause of excessive volatility, but it is a positive factor in the long run: "The ecosystem is more mature. The number of players who are entering is much more mature. Every bank is developing its own crypto project, how to provide Bitcoin to their wealth customers." He also said that the recent sell-off is a perfect buying opportunity and believes that the current market is more mature than ever. He also advocates for compliance because these regulations will help more institutions introduce Bitcoin.

When the market is extremely panic, many speculators will take the opportunity to switch from long to short. From the Bybit long-short ratio data, we can see that the short force has increased recently. Even many bigwigs including Mike Novogratz have set their sights on the vicinity of $25,000. However, considering that short contracts are often accompanied by high leverage, once the market rebounds against the trend, they will be quickly liquidated and become the fuel for Bitcoin to rise again. Therefore, the possibility of "short squeeze" cannot be ruled out for this wave of rebound and rise that started around 10 pm Beijing time.