According to strategists watching the sell-off in the cryptocurrency market, another week of falling Bitcoin could be a harbinger of more troubles, writes Bloomberg.

According to analysts at Oanda Corp., Evercore ISI and Tallbacken Capital Advisors, a further decline in Bitcoin could lead to the emergence of a $20,000 threshold zone as a target for decline. Bitcoin is down about 7% this week.

“The largest cryptocurrency is dangerously close to $30,000 amid growing regulatory concerns, and a break through $30,000 could lead to a huge selloff,” said Edward Moya, senior market analyst at Oanda Corp.

Bitcoin’s fall to $30,000 in May occurred after Tesla (NASDAQ:TSLA) refused to accept cryptocurrency as payment for cars and Elon Musk’s tweet about the unenvironmental friendliness of mining, as well as due to tightening legislation regarding cryptocurrencies in China. The ability of US authorities to return the ransom in Bitcoin has refuted the idea that the digital currency is beyond the control of the government, as some supporters of the coin have believed.

Strategists believe that the $20 thousand level for Bitcoin could become critical. But on the other hand, Bitcoin also has its supporters who remain confident in its long-term prospects.

For example, Michael Saylor’s MicroStrategy increased the sale of so-called “junk bonds” from $400 million to $500 million to finance the purchase of more bitcoin, and El Salvador’s President Nayib Bukele announced that the country had accepted bitcoin as legal tender.

The latter circumstance has invigorated the cryptocurrency: as of 16:55 Moscow time, Bitcoin is growing by 7.57%, approaching $35 thousand.

Also against this background, debates are intensifying about how strictly cryptocurrencies need to be controlled. US Securities and Exchange Commission Commissioner Hester Pierce said she was concerned about regulators being pushed to take a more active role in the crypto market.

On the other hand, IRS Commissioner Charles Rettig stated that Congress needs to provide tax authorities with clear legislative authority to collect information on cryptocurrency transfers worth more than $10,000.