BTC Price Retreats below $30K, While ETH Could Tumble to $1,500
The price of bitcoin is trading well below the $30K support amid a broader crypto market retreat. The BTCUSD pair slipped as low as $29,300 on Tuesday morning, trading lower than it did at the start of 2021.
The heavy losses now mean that the king coin has erased all the gains accumulated in this year’s bull cycle, despite rising to lofty heights above $64K just three months ago.
Many market participants are now exhibiting extreme fear after the latest bearish price action saw BTC break crucial support. Analyst CryptoCred predicts that BTC bulls must quickly reclaim the $30K level to avert further downside toward $20K or even $14K in what he calls the “Armageddon scenario.”
However, analyst Material Scientist is pointing to one indicator that could give bitcoin holders some much-needed hope. In a July 20 tweet, the analyst highlighted unparalleled bids for the flagship crypto to halt further moves to the downside.
“We just hit the largest bid ever. It would take some massive FUD to break it. So, I think the upside is more likely,” he wrote.
Further signs that the worst of the current sell-off could be over soon come from Binance’s order book, which shows that BTC is now in its strongest support zone in history. Additional order book data from the leading exchange shows very little resistance between the current price of $29,600 and $35K, meaning that the bulls can quickly spark a rebound.
Whales and Little Fishes Are Amassing Bitcoin
Despite BTC crashing below $30K for the first time in over a month, a look at investor activity around the digital coin reveals some surprising results.
According to statistician Willy Woo, smaller hodlers are “going parabolic” in terms of accumulating bitcoin. Woo commented that little fishes now hold 32% of what whales hold, an impressive stat that shows retail investors aren’t being left behind in the race to amass coins.
On the other hand, whales have used their superior financial power to buy the dip aggressively. According to a tweet from Lex Moskovski, the CIO of Moskovski Capital, large investors have now added over 57,000 bitcoins to their stashes (approximately $1.7B).
Meanwhile, data from on-chain analytics provider Glassnode shows that miners are dumping coins, which whales quickly absorb. The miners are likely being forced to sell their holdings to finance the setting up of new rigs after their expulsion from China.
The broader crypto market is trading in a sea of red as jitters overwhelm investors amid a worldwide surge in Covid-19 cases. Panic in the global market has also affected traditional stocks, leading to heavy losses for S&P 500, the DOW, and other indexes.
ETH has parried gains of over 3% over the past 24 hours. As a result, the top altcoin’s price remains at risk of accelerating lower toward $1,500 in the near term.
Other top altcoins such as XRP, ADA, and DOGE have logged double-digit losses on the weekly chart. Almost all top-fifty cryptocurrencies are trading in the red as the crypto market continues to struggle.