Bitcoin (BTC) was unable to reclaim $ 30,000 after losing support on July 20 as indicators of fear and greed soared.
Data from Cointelegraph Markets Pro and TradingView show that BTC / USD continues to trade in the $ 20,000-30,000 range on Tuesday.
The largest cryptocurrency had a tumultuous night of price movement that abruptly added the existing losses to seal a negative 24-hour gain of -6%.
The move goes hand in hand with a depressed mood in the traditional markets. The Fear & Greed Index, which uses a basket of factors to determine the mood of market participants, fell into the “extreme fear” zone on Tuesday at 17/100.
At the same time, the equivalent cryptocurrency, the Crypto Fear & Greed Index, is racing to catch up and falls to 19/100 – also known as “extreme fear”.
Crypto Fear & Greed posted a local low of just 10/100 last month, while its traditional counterpart halved in value in a week.
Perhaps predictably, traders were more cautious.
“32.3k $ rejection, $ 31k rejection and now in the next support zone,” Michaël van de Poppe. by Cointelegraph warning.
“There’s no real volume through which the liquidity tap will happen yet, or we’ll see a test at $ 24,000 for Bitcoin.”
On Monday, the trader and analyst Rekt Capital summed up the gloomy picture on the spot market and came to the conclusion that a downward trend is more likely to prevail. In this case, BTC / USD fell almost exactly within its target zone.
“BTC lost weekly support (black) and lost the 50-week EMA in blue convincingly,” he said. Summary on Twitter along with the corresponding table.
“BTC has not been able to sustain the bullish momentum emanating from the green box. Indeed, the selling pressure on BTC could increase and possibly force a return to the green zone soon. “
Let’s look at things Buy and sell positions while Binance is still showing support between $ 27,000 and $ 29,000 on the major exchange despite the drop in prices.
Related: Institutional Demand For Bitcoin Vaporizes As BTC Sinks Below $ 31,000
On the flip side, resistance is thin below $ 35,000, which offers a silver lining to bulls hoping for a quick rebound if the market finds fuel to retreat above the $ 30,000 mark.
Altcoins added to existing weakness as Bitcoin fell, with many of the top 50 cryptocurrencies by market cap posting 20% weekly losses.
Ether (ETH), the largest altcoin, lost longer-term uptrend in 2021 on Monday, which continues to trade below $ 1,800.
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