Crypto Joins Stocks in Extreme Fear After Bitcoin Loses $ 30,000 in Support

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Bitcoin (BTC) failed to regain $ 30,000 after losing support on Tuesday as the Fear & Greed indices collapsed.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewBTC Price Stays Below $ 30,000 Waterline

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD continued to trade in the $ 20,000 to $ 30,000 area on Tuesday.

The largest cryptocurrency saw turbulent overnight price action, sharply adding to existing losses to seal negative 24-hour returns of -6%.

This decision was accompanied by sour sentiment in traditional markets. The Fear & Greed Index, which uses a basket of factors to determine the mood of 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, falling to 19/100, also referred to as extreme fear.

Crypto Fear & Greed has seen local lows of just 10/100 last month, while the score of its traditional counterparts has halved in one week.

Crypto Fear & Greed Index as of July 20. Source: Alternative.me

Perhaps predictably, traders were more than cautious.

Reject $ 32.3K, Reject $ 31K, and now in the next area of ​​support, Cointelegraphs Michal van de Poppe warned.

No actual volume yet, through which the liquidity tap should still occur or else see a test at $ 24,000 for the Bitcoin.BTC / USD scenario with areas of support and resistance. Source: Michal van de Poppe / Twitter

On Monday, fellow trader and analyst Rekt Capital summed up the grim picture in the spot markets, concluding that the decline was more likely to prevail. In this case, BTC / USD fell almost exactly in its target area.

BTC lost weekly support (black) and convincingly lost the 50 week blue EMA, he summed up on Twitter alongside the corresponding chart.

BTC failed to preserve the bullish momentum that originated in the green box. In fact, the selling pressure may build on BTC and may force a return to the green zone soon. BTC / USD scenario with areas of support and resistance. Source: Rekt Capital / TwitterAltcoins doubles daily losses

A review of buy and sell positions on the main Binance exchange, meanwhile, showed that support remained in place between $ 27,000 and $ 29,000 despite the price drop.

Related: Institutional Bitcoin Demand Evaporates As BTC Struggles Below $ 31,000

Resistance, on the other hand, was thin below $ 35,000, offering a silver lining to the bulls hoping for a quick rebound if the market found fuel for a U-turn above the 30,000 mark. $.

BTC / USD (Binance) buy and sell levels as of July 20. Source: Material Indicators / Twitter

Altcoins compounded existing weakness with the fall of Bitcoin, with many of the top 50 cryptocurrencies by market cap reaching 20% ​​weekly losses.

Ether (ETH), the largest altcoin, lost a long-term uptrend on Monday in 2021, continuing to trade below $ 1,800.

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