20 July 2021, 10:07
2 min reading
The entire crypto market has collapsed over the past day. The price of Bitcoin fell by 6.3%, but the trading volume increased slightly
The altcoin market fell even more, by an average of 10%. As a result, Bitcoin’s dominance continued to grow.
We expected Bitcoin to drop below $30,000 this week and wrote about it just yesterday. Let’s see if this fall is the final point of a downtrend:
Bitcoin broke through the important psychological $30,000 mark tonight and went down. Particularly interesting is the fact that the trading volume did not actually increase during this fall. This can be judged from the above chart.
This means that most traders have placed their stop-losses below this level. Most likely, the stop-loss belt is below $28,800. This very mark is the local bottom, to which the price dropped on June 22nd.
At the same time, the chart continues to move inside the descending channel. Now the price is trying to approach the lower border, and, most likely, it will be able to do it in the near future. Moreover, the bottom line is almost perfectly aligned with the $28,800 mark.
The liquidation volume also suggests that the $30,000 level did not become important for Bitcoin. This time, positions totaling just over $500 million were liquidated. This is only slightly above the average value for this indicator.
The longer Bitcoin is in the sideways, the more it seems that it is preparing for a new collapse. In the event of a breakdown of the $28,800 level, a cascade closing of stop-losses will occur, which will lead to an acceleration of the fall. On this wave, the price can reach the $26,000 level within a few hours. From this area, we can see a bounce back up. But if the market will remain weak and buyers will not be active, then the price can quickly go even lower to the range of $23,000 — $24,000. If in doubt, use our AI Price Predictions to find out the price of altcoins for the near future.
The market now looks extremely negative. Buying Bitcoin and altcoins at current levels is extremely dangerous because the price can go even lower. We have not seen any strong statements lately, so there are practically no prerequisites for growth now.