After losing support on July 20, Bitcoin (BTC) failed to regain $30,000 as fear and greed indices raced to the bottom. The “extreme fear” surrounding Bitcoin’s plunge below $30,000 is highlighted by a rout in sentiment in both crypto and traditional markets.
Bitcoin’s (BTC) rocky journey continued on July 19, as a widely predicted downward move happened in the early hours of Monday, dropping the price of BTC below $31,000. BTC/USD continued to trade in the $20,000-$30,000 range on Tuesday, according to TradingView data.
The price movement, which came a day after Bitcoin’s lowest weekly closing since December 2020, highlighted the sensitivity of a market with low volume and network fundamentals that are still recovering.
Largest cryptocurrency existing losses
The world’s largest cryptocurrency had a tumultuous night of trading, quickly adding to existing losses to end the day with negative returns of -6 percent. The move coincided with a drop in traditional market sentiment.
On Tuesday, the Fear & Greed Index, which measures market sentiment using a variety of criteria, plummeted into the “extreme fear” zone, scoring 17/100.
Simultaneously, the cryptocurrency equivalent, the Crypto Fear & Greed Index, raced to catch up, falling to 19/100, also known as “extreme fear.” Last month, crypto Fear & Greed hit new lows of just 10/100, while the traditional counterpart’s score has dropped by half in a week. Traders were cautious, as one might expect.
“BTC has convincingly lost the blue 50-week EMA and weekly support (black),” he explained on Twitter accompanying the relevant chart.
#BTC has lost Weekly support (black) and convincingly lost the blue 50-week EMA$BTC has failed to preserve the bullish momentum that originated in the green box
In fact, sell-side pressure may mount on BTC and may force a return to the green area soon#Crypto #Bitcoin https://t.co/CUFeCEhAcX pic.twitter.com/ZHU0X4jvs1
— Rekt Capital (@rektcapital) July 19, 2021
Rekt Capital, a fellow trader and analyst, summed up the bleak picture on spot markets on Monday, saying that the downside was more likely to prevail. BTC/USD ended up falling almost exactly to his target zone.
BTC price analysis
Bitcoin is ranked 1st cryptocurrency. At the time of writing its BTC value is $29,494.97 with the change of 5.28. Coin’s trading volume in the last 24 hours is $24,123,252,908 along with market cap of $554,432,273,485. Currently, its circulating supply is 18,761,506.00 BTC.
Bulls hoping for a quick rebound should the market find fuel for a U-turn back above the $30,000 barrier will find a silver lining in the fact that resistance was thin below $35,000.
Meanwhile, Bitcoin’s drop caused immediate suffering for altcoins, which often doubled the largest cryptocurrency’s hourly losses. An analysis of major exchange buys and sell positions
In the meantime, despite the price drop, Binance’s support level remained between $27,000 and $29,000. On Monday, the largest altcoin, Ether (ETH), lost its longer-term 2021 uptrend and continued to trade below $1,800.
$BTC orderbook update
Timestamp: 2021-07-20 08:02:52.920540
Next update in ~2hJoin us here for more analyses: https://t.co/O8U30KuKRe pic.twitter.com/j7a4Uhd4JX
— Material Indicators (@MI_Algos) July 20, 2021
In an interview with CNBC, Grayscale CEO Michael Sonnenshein said that the regulatory discussion on Bitcoin exchange-traded funds is in its “final stages,” and that the company is committed to making GBTC into one.
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