BTC Price Dips Below the $32K Critical Hold Point: Is This The Market Bottom?

News / 17.07.2021

Bitcoin failed to gain momentum over the past 24 hours and dropped almost below $31K as the broader crypto market struggled to rebound.

According to a tweet from respected trader Byzantine General, retail investors are cashing in on the decline by consistently short squeezing the flagship cryptocurrency. This trend might spark some panic selling in the market, pushing prices closer to the much-awaited bitcoin bottom.

Responding to Byzantine general’s outlook on the bitcoin market, one Twitter user wrote:

“Chances of cascading bottom much greater than any reversal here. Money on retail for once.”

The bearish sentiment in the bitcoin space suggests that the coin could finally break the $30K support it has managed to hold over the past few weeks. Investors will now be watching how the rest of the weekend plays out, with some optimism of an upcoming weekend relief rally.

Bitcoin showed some signs of life amid the current bearish trend on Friday, as it bounced off $31K amid unconfirmed reports that Bank of America had green-lit BTC futures trading. 

The coin surged to $31,900 on the bullish news but bears quickly stepped in to drag the price down. As of this article’s writing, the world’s largest cryptocurrency is changing hands for $31,342, per data from coinmarketcap.

No Shock Rebound For Bitcoin Yet

Earlier in the week, trader Crypto Ed had predicted a shocking rebound for the BTC price, arguing that the coin would soar to its range highs of $42K before dipping close to the $30K support.

That prediction quickly fell apart after bears took control of the BTC price action over the past few days. The trader has now backtracked on his earlier prediction, tweeting on Friday that the coin making new lows has invalidated the possibility of a bounce higher, at least in the short term.

Speculations abound that institutional investors are waiting for BTC to break the $30K support before stepping in and buying the dip. If this scenario plays out and big-money players up their investments in bitcoin, then a large accumulation event could ensue, causing the bulls to come storming back in. 

Meanwhile, crypto analytics firm Glassnode has flagged some significant on-chain activity for bitcoin in the past week. On July 16, the firm noted that more than 1.86 million coins were moved on-chain between the $31K and $34.3K price range, dubbing it the “largest realized volume cluster since $12k.” 

ETH Price Settles Below $2K

Similar to bitcoin, Ether gained some upward momentum and rallied to a swing high of $2,043 earlier in the week. However, the world’s second-largest cryptocurrency started a fresh decline after failing to settle above the important $2K level.

The good news is that the bulls have managed to hold the $1,850 support, and the top altcoin is now consolidating gains at its current price of $1,876.73

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.