Bitcoin Loses Key Support, While Altcoins Suffer at the Hands of Bears

The BTC price fell below the $31K support level on Monday, a day after the largest Grayscale unlocking event this month. 

Lackluster trading saw bitcoin register its lowest weekly close since Dec of 2020, as continued downward pressure led to the BTCUSD pair shedding over 3% of last week’s gains. The top cryptocurrency parried almost $2,800 of the gains accumulated last Friday, which saw BTC momentarily trade above $34K.

Spot prices on the Bitstamp exchange plummeted to $30,630 at the start of the week after BTC lost its important $32K support, prompting some traders to speculate that the much-anticipated bitcoin bottom was finally here. 

According to in-house trader Immortal Crypto, market participants should focus on catching the ultimate BTC price floor. 

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“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,” the pseudonymous trader tweeted. 

The bearish price action in the BTC market now raises concerns as to whether bulls can hold the crucial $30K support. However, a look at the buy and sell orders on the Binance exchange shows significant demand remaining at $27K, hinting that the BTC price may not dip further below that level. 

Investors can also comfort that a daily close below $31K has not happened since January of this year. At the time of writing, the flagship crypto is circling $30,700 as market volatility continues to heat up.

Bitcoin Fundamentals Remain Strong

Despite the current bitcoin price slump and range-bound trading dragged on for weeks, fundamentals predict an imminent recovery.

For one, the BTC network hash rate has managed to hold up above its local low of 83 EH/s, as more miners exiled from China continue to set up shop in other locations. 

According to Kevin Zhang, vice president of Foundry Services, the worst of the recent turmoil from China’s intense crackdown on crypto should conclude soon. He predicted in a recent tweet that the Bitcoin network hash rate and difficulty should recover in the coming days. 

Other bullish news came from Grayscale CEO Michael Sonnenshein, who told CNBC that regulatory discussions around a bitcoin ETF are almost over. However, the CEO reiterated his hedge fund’s commitment to turn the Grayscale Bitcoin Trust (GBTC) into an ETF product. 

Finally, a new survey by Finder.com shows that the current BTC volatility hasn’t dampened the expectations of many experts regarding the benchmark crypto’s long-term prospects. The poll sampled the opinions of 42 crypto and fintech experts. 

Half the respondents predict that “hyperbitcoinization,” a term used to refer to when BTC overtakes fiat money and CBDCs, will happen before 2040.

ETH and Top Altcoin Prices Turn Red

Bitcoin’s dip over the past few days has triggered massive losses for Ether and other top-fifty cryptocurrencies.

ETH, the world’s second-largest cryptocurrency, dipped by nearly 4% on Monday, testing the $1,800 support. The top altcoin is currently trading at $1,827, per data from the crypto ranking website coinmarketcap. 

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Other leading altcoins also suffered at the hands of bitcoin bears, with DOGE, DOT, UNI, and many others posting double-digit losses on the weekly chart.