Bitcoin fell below $30,000 during the Asian trading session on Friday morning. The asset lost 1.5% on the day in a drop to an intra-week low of $29,750.
This is the first time that Bitcoin has fallen below $30,000 this month after four separate rejections of resistance since it crossed the price barrier in June 2022.
Well-known analyst Willie Woo said that “average retracement forces are now dominating the Bitcoin price action” on July 7.
“Sideways or down ways are easier than up. Fundamentals suggest we need a calming phase to reset things.”
Recoil means forces are now in control # Bitcoin price action.
The bottom or side side is easier than the top.
The fundamentals suggest that we need a period of calm to reset things. pic.twitter.com/N7USKlwG3d
– Willy Woo (woonomic) July 7, 2023
Bitcoin is facing severe resistance
A second major failure to break the $31k resistance could form a double top chart pattern. If this scenario plays out, bitcoin price could decline to support the $24k high area again.
Other analysts echoed the sentiment that more downsides may be on the cards.
ColdBloodShill July 6, 2023
On July 6, Glassnode reported that short-term holders are reporting high levels of exchange engagement. They have sent more than 617,000 BTC to exchanges over the past three weeks.
Market sentiment also seems to be fading a bit. Fear and greed index‘It has fallen towards neutral territory at 55 from a high of 64 earlier this week.
However, some analysts remain positive, with Josh Rager prediction that “the pullback won’t be that deep now” and that people were “overthinking” the idea of a $24K correction.
This sentiment about a $24,000 correction was very popular, Rager said, but “people are overthinking it.”
If BTC goes back to $25k again, he added before saying that “it won’t be until later in the year after more rally before that.”
“With a BlackRock ETF in place with a real possibility of approval by mid-August – I’m inclined to be more bullish before a big pullback. Markets will do what they will but it’s hard to outperform the current bitcoin fundamentals.”
However, these comments came when BTC was still trading above $31k.
Elsewhere on Crypto Markets
Cryptocurrency markets lost another 1.3% on the day dropping to $1.21 trillion as things calmed down.
BTC has been hovering around the $30k level at the time of writing, but has posted losses in the past four days, with the exception of one rally on July 6th.
Ethereum was hit harder with a 3.2% drop to $1,850 at the time of writing, altcoins were a sea of red.
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