Bitcoin (BTC) fell below the USD 31,000 support on Monday after sideways trading gave way to downward pressure.
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.
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.
I am not saying that this is the bottom.
I’m just saying the PA always looks terrible from below, and the bottom is only that obvious when it’s too late to capture.
3k & 30k
– Immortal (@inmortalcrypto) July 14, 2021
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.