Bitcoin fell below the USD 30,000 support level for the first time in four weeks. Due to the lack of institutional demand for Bitcoin and the widespread sell-off of the safe haven Bitcoin caused by the epidemic, the downward trend could worsen.
Bitcoin is down 5.78% in the past 24 hours and is down 10.39% in a week. At the time of writing, Bitcoin was trading at $ 29,862.62 during the intraday.
Bitcoin has been locked in a price range between $ 30,000 and $ 40,000 since mid-May. Due to China’s tough repression Cryptocurrencies, Bitcoin briefly fell below the $ 30,000 mark on June 22nd. This is the second time Bitcoin has broken below the $ 30,000 psychological barrier since then.
According to a report from cryptocurrency data provider Glassnode, the current Bitcoin price continues to consolidate with low volatility.
The UTXO indicator – a trading volume indicator that shows the price range of the chain, shows that more than 10.5% of the total supply of BTC with a total value of 1.973 million BTC is trading between $ 31,000 and $ 34,300. This transaction volume is much higher than the trading volume in the range between $ 50,000 and $ 60,000.
At the same time, it’s worth noting that not many trading supports are above $ 18.8,000. If Bitcoin continues to fall, the trading level of 26.5K will be the first supporting level, followed by 23.3K and 18.8K.
In addition, the market board correction in May led to a sharp decline in the interest of institutional investors.
Take the grayscale GBTC as an example. Last week the GBTC market rebate was still in place and the rebate range was around -11.0% to -15.3%. Although it can be seen from the graph that the discount has slowed compared to mid-May due to China, the restrictions on crackdown on cryptocurrency miners have caused a discount of up to 20%, but it is still at a discount.
The net inflow of ETFs for other purposes has also slowed. According to Glassnode data, the largest net outflow this week since mid-May was 90.76 BTC.
Market analyst Edward Moya said virus pandemic fear sparked a general panic selling of all the best performing assets.
The three major US stock indices, the S&P 500 Index, the Dow Jones Index and the Nasdaq Index, all declined to varying degrees, closing -1.59%, -2.09% and -1.06%, respectively.
Moya said this:
“If the sell-off on the stock exchanges intensifies, Bitcoin and ether will extend their declines slightly “
She also revealed that Bitcoin could be prone to a flash crash to the $ 20,000 level, but that price level should attract many institutional buyers who have been patiently waiting for it.
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