Bitcoin Price Plunges Below $ 31,000 After 8-Month Low Weekly Close

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

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewFresh Pain For The BTC Price

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD hit local lows of $ 30,630 on Bitstamp on Monday.

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

Traders had largely predicted a decline after Bitcoin failed to maintain higher support levels, with the integrity of $ 30,000 itself in question.

Volatility, finally for Bitcoin, summed up trader and internal analyst Michal van de Poppe.

BTC / USD (Binance) buy and sell levels as of July 19. Source: Material Indicators / Twitter

At the time of this writing, BTC / USD was hovering around $ 30,700 with daily losses of around 3%. A look at the buy and sell orders on the main Binance exchange showed considerable demand remaining at $ 27,000 and above, reducing the likelihood of a deeper dive beyond that zone.

Among the market players, it was a question of reaching the probable low in prices.

Don’t say it’s the bottom.

I’m just saying the PA still looks horrible at the bottom, and the bottom is all too obvious when it’s too late to catch it.

3k & 30k

– Similar feeling, most calling 28k n lower – Similar structure, fakeout and slow bleeding. # Bitcoin pic.twitter.com/9NyEC6o6HD

Immortal (@immortalcrypto) July 14, 2021

Previously, van de Poppe had also suggested that the ultimate floor price for BTC might not be the result of a sudden dive or have clearly defined characteristics.

A daily close below $ 31,000, however, has not occurred since January.

Altcoins suffer at the hands of Bitcoin bears

The bitcoin dive, meanwhile, triggered instant pain for altcoins, which often doubled the biggest hourly cryptocurrency losses.

Related: Bitcoin Sees Second Longest Bull Market Drop With BTC Price ‘Stuck’ At $ 30,000

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

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

Today, Grayscale CEO Michael Sonnenshein told CNBC in an interview that the regulatory discussion over Bitcoin exchange-traded funds is entering its final stages and the company is committed to turning GBTC into such a product.

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