Bitcoin (BTC) failed to regain $30,000 after losing support on July 20 as fear & greed indices raced each other to the bottom.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price stays below $30,000 waterline
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continue trading in the $20,000-$30,000 zone on Tuesday.
The largest cryptocurrency saw a turbulent night’s price action, abruptly adding to existing losses to seal 24-hour negative returns of -6%.
The move came in tandem with a souring sentiment on traditional markets. The Fear & Greed Index, which uses a basket of factors to determine the mood among market participants, fell into the “extreme fear” zone on Tuesday, measuring 17/100.
At the same time, the cryptocurrency equivalent, the Crypto Fear & Greed Index, raced to catch up, dropping to 19/100 — also denoted as “extreme fear.”
Crypto Fear & Greed saw local lows of just 10/100 last month, while the traditional counterpart’s score has halved in a week.
Crypto Fear & Greed Index as of July 20. Source: Alternative.me
Perhaps predictably, traders were more than cautious.
“Rejects $32.3K, Rejects $31K, and now at the next support zone,” Cointelegraph’s Michaël van de Poppe warned.
“No real run of volume yet, through which the liquidity tap should still happen or we’ll see a test at $24K for Bitcoin.”BTC/USD scenario with support and resistance zones. Source: Michaël van de Poppe/ Twitter
On Monday, fellow trader and analyst Rekt Capital had summed up the grim picture on spot markets, concluding that downside was more likely to prevail. In the event, BTC/USD fell almost exactly to his target zone.
“BTC has lost Weekly support (black) and convincingly lost the blue 50-week EMA,” he summarized on Twitter alongside the relevant chart.
“BTC has failed to preserve the bullish momentum that originated in the green box. In fact, sell-side pressure may mount on BTC and may force a return to the green area soon.”BTC/USD scenario with support and resistance zones. Source: Rekt Capital/ Twitter
Altcoins double daily losses
A look at buy and sell positions on major exchange Binance meanwhile showed support remaining in place between $27,000 and $29,000 despite the price dip.
Related: Institutional demand for Bitcoin evaporates as BTC struggles below $31K
Resistance, on the other hand, was thin below $35,000, providing a silver lining for bulls hoping for a swift rebound should the market find fuel for a U-turn back above the $30,000 mark.
BTC/USD buy and sell levels (Binance) as of July 20. Source: Material Indicators/Twitter
Altcoins compounded existing weakness as Bitcoin fell, with many of the top fifty cryptocurrencies by market cap hitting 20% weekly losses.
Ether (ETH), the largest altcoin, lost a longer-term 2021 uptrend on Monday, continuing to trade below $1,800.