Bitcoin News: The price of the leading cryptocurrency Bitcoin fell below the $30,000 support level for the first time in four weeks. The decline that Bitcoin has experienced since mid-May, the decrease in institutional demand and the fluctuations experienced may further increase the bearish trend attributed to the large-scale sale of Bitcoin.
Bitcoin is down 5.78% in the last 24 hours and 10.39% in the last week. The leading cryptocurrency Bitcoin is trading at $ 29,624 at the time of writing after these drops.
Since mid-May, Bitcoin has been locked in a price range of $30,000 to $40,000. Due to strong measures taken by China to suppress cryptocurrencies, Bitcoin briefly dropped below $30,000 on June 22. This is the second time Bitcoin has fallen below the psychological barrier of $30,000 since then.
According to a report by cryptocurrency data provider Glassnode, the current Bitcoin price continues to consolidate with low volatility.
The UTXO indicator is a trading volume indicator that shows the chain’s pricing range. The indicator shows that over 10.5% of the total BTC supply is worth between $31,000 and $34,300 with a total value of 1,973 million BTC. This trading volume is much higher than the trading volume between $50k and $60k.
At the same time, it is worth noting that there are not many trading supports above $18.8k. If Bitcoin falls further, the trading level of $26.5K will be the first support level, followed by $23.3K and $18.8K.
Moreover, the market board correction in May led to a sharp decline in institutional investors’ interest. For example, Grayscale GBTC. GBTC market discount continued last week and the discount range was approximately -11.0% to -15.3%. Although it can be seen from the chart that the discount rate slowed compared to mid-May due to China, the restrictions on cryptocurrency miners resulted in a discount of up to 20%.
The net inflow of ETFs for other purposes has also slowed. According to Glassnode data, this week the biggest net outflow since mid-May was as high as 90.76 BTC. Market analyst Edward Moya said the fear over the pandemic has triggered a general panic selling of all top-performing assets.
Meanwhile, the three major US stock indexes, the S&P 500 Index, Dow Jones Index and Nasdaq Index, fell by varying degrees, closing by -1.59%, -2.09% and -1.06%, respectively. Analyst Edward Moya used the following statements:
“If stock market sales intensify, it could easily extend Bitcoin and Ethereum declines”
He also revealed that Bitcoin may be vulnerable to a sudden drop to the $20,000 level, but that price level should attract many institutional buyers who are patiently waiting to see it.