Bitcoin (BTC) fell below the USD 31,000 support on Monday after sideways trading gave way to downward pressure.
Fresh pain for the BTC price
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD hit local lows of $ 30,630 at Bitstamp on Monday.
One day after Bitcoin’s lowest weekly close since December 2020, the price action underscored the sensitivity of a low volume market and network fundamentals that are still in the recovery phase.
Traders had broadly forecast a downward move after Bitcoin failed to keep support levels higher, questioning the integrity of the $ 30,000 itself.
“Volatility, finally for Bitcoin”, summarized the in-house trader and analyst Michaël van de Poppe.
At the time of writing, BTC / USD is circling around USD 30,700 with losses of around 3% daily. A look at buy and sell orders on the major exchange, Binance, showed that sizable demand remains at $ 27,000 and above, reducing the likelihood of going deeper beyond that range.
Among the market participants, it was a question of reaching the probable bottom of the price.
I am not saying that this is the bottom.
I’m just saying that the PA always looks terrible at the bottom and that the reason is only too obvious when it’s too late to catch it.
3k & 30k
– Similar sentiment, most of them are asking for 28k n lower.
– Similar structure, fakeout and slow bleeding. # Bitcoin pic.twitter.com/9NyEC6o6HD
– Immortal (@inmortalcrypto) July 14, 2021
Previously, van de Poppe had also suggested that the final BTC price floor may not have been due to a sudden slump or have well-defined characteristics.
However, there has not been a daily close below $ 31,000 since January.
Altcoins are suffering from the hands of bitcoin bears
Bitcoin’s dive, meanwhile, caused immediate pain for altcoins, which often doubled the largest cryptocurrency’s hourly losses.
Related: Bitcoin is seeing its second longest bull market downdown, with BTC price stuck at $ 30,000
Ether (ETH) lost nearly 8% that day, reaching a support of $ 1,800, suggesting a fragile altcoin environment that is still at the mercy of Bitcoin sentiment.
One possible general explanation lay on the door of the Grayscale Bitcoin Trust, which completed a 16,000 BTC unlock event on Sunday that could have an opportunity to sway the market just a day later.
Grayscale CEO Michael Sonnenshein said in an interview with CNBC today that the regulatory discussion on Bitcoin Exchange Traded Funds is entering its “final phase” and that the company is keen to turn GBTC into such a product.