Bitcoin price dives below $31K after lowest weekly close in 8 months

Bitcoin price dives below $31K after lowest weekly close in 8 months

Bitcoin (BTC) fell below $31,000 support on July 19 after sideways trading gave way to downside pressure.

Fresh pain for BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $30,660 on Bitstamp on Monday.

Coming a day after Bitcoin's lowest weekly close since December 2020, the price action underscored the sensitivity of a market with low volume and network fundamentals still in their recovery phase.

Traders had broadly predicted a move downwards after Bitcoin had failed to hold on to support levels higher up, with the integrity of $30,000 itself being called into question.

"Volatility, finally for Bitcoin," in-house trader and analyst Michaël van de Poppe summarized.

At the time of writing, BTC/USD circled $30,800 with daily losses at around 3%. A glance at buy and sell orders on major exchange Binance showed considerable demand remaining at $27,000 and upwards, reducing the likelihood of a deeper dive beyond that area.

Among market participants, it was all about catching the likely price bottom.

Not saying this is the bottom.I'm just saying the PA always looks horrible at the bottom, and that the bottom is only too obvious when it's too late to catch it.3k & 30k- Similar sentiment, most calling for 28k n lower.- Similar structure, fakeout and slow bleed.#Bitcoin— Inmortal (@inmortalcrypto) July 14, 2021

Earlier, Van de Poppe had also suggested that the ultimate BTC price floor may not come as a result of a sudden dive or have clearly-defined characteristics.

A daily close below $31,000, nonetheless, has not happened since January.

Altcoins suffer at the hands of Bitcoin bears

Bitcoin's dive meanwhile sparked instant pain for altcoins, which often doubled the largest cryptocurrency's hourly losses.

Ethereum (ETH) shed nearly 8% on the day to hit $1,800 support, highlighting a fragile altcoin environment still at the mercy of Bitcoin sentiment.

A possible overall explanation lay at the door of the Grayscale Bitcoin Trust, which on Sunday completed a 16,000 BTC unlocking event which only a day later could have an opportunity to impact the market.