Bitcoin tests a key level as the cryptocurrency falls below $33,000

A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021.
Dado Ruvic | Reuters

The price of bitcoin slumped to a pivotal level after it fell to a two-week low early Monday.

Bitcoin hovered around $32,000 range throughout the day, down 50% from its April all-time high, following news that China has intensified its crackdown on crypto mining operations. Its central bank also ordered Alipay and other major financial institutions to de-risk cryptocurrency businesses.

The notoriously volatile cryptocurrency has struggled to reclaim its highs from earlier in the quarter. The price first fell to $32,000 in early June and has been on a rollercoaster ride before briefly touching $40,000 last week.

But Fairlead Strategies founder Katie Stockton thinks that drop doesn't represent a significant breakdown and should stabilize in the days ahead.