Bitcoin price fell below $ 31,000 after the lowest weekly close in 8 months

Jul 19, 2021

Bitcoin (BTC) fell below the USD 31,000 support on Monday after sideways trading gave way to downward pressure.

Bitcoin price drops below $ 31,000 after the lowest weekly close on May 8th
BTC / USD 1-hour candlestick chart (Bitstamp). Source: TradingView

New pain for the BTC price

Data from Cointelegraph Markets Pro and TradingView show that BTC / USD hit a local low of $ 30,630 at Bitstamp on Monday.

One day after Bitcoin’s lowest weekly close since December 2020, the price action underscores how sensitive the low-volume market is and how the fundamentals of the network are still recovering.

Traders largely expected a downward move after Bitcoin failed to hold higher support, questioning the integrity of the $ 30,000 itself.

“Volatility, ultimately for Bitcoin”, analyst and insider Michaël van de Poppe Summary.

Bitcoin price drops below $ 31,000 after the lowest weekly close on July 8th
BTC / USD (Binance) buy and sell levels as of July 19th. Source: Material Indicators / Twitter

At the time of writing, BTC / USD was hovering around $ 30,700 with a daily loss of about 3%. A look at buy and sell orders on the major exchange, Binance, shows that significant demand remains at $ 27,000 or more, reducing the possibility of a deeper drop beyond this range.

Market participants are all about a likely low point.

Before that, van de Poppe also suggested that the BTC floor might not ultimately be the result of a sudden drop or have well-defined characteristics.

However, there has not been a daily close below $ 31,000 since January.

Altcoins hit by bitcoin bears

Meanwhile, Bitcoin’s decline has caused immediate pain to altcoins, which often double the cryptocurrency’s largest hourly losses.

Related: Bitcoin sees second-longest bull market decline with BTC price at $ 30,000

Ether (ETH) was down nearly 8% on the day to hit the USD 1,800 support, indicating a fragile altcoin environment that remains dependent on Bitcoin sentiment.

One possible general explanation is on the doorstep of the Grayscale Bitcoin Trust, which completed its 16,000 BTC unlock event on Sunday that could have a chance to sway the market just a day later.

Today, Grayscale CEO Michael Sonnenshein told CNBC said in an interview that the regulatory discussion on Bitcoin Exchange Traded Funds is entering its “final phase” and that the company has committed itself to making GBTC such a product.



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