The price of bitcoin dropped below $30,000, going below the support level that had held for the past four weeks and potentially setting up the leading cryptocurrency for deeper price declines. The leading cryptocurrency was trading around $29,731 at press time and is down about 10.01% over the past week. Bitcoin has stayed in the broad price range of $30,000 to $40,000 since mid-May and only broke below the $30,000 mark on June 22 before today.
Bitcoin drops below the crucial support level of $30,000.
The world’s leading cryptocurrency briefly traded at $29,700 a day after the People’s Bank of China ordered the country’s major financial institutions to stop facilitating crypto transactions. The latest crash in bitcoin’s price comes as the unique number of addresses interacting with the Bitcoin blockchain has been on a constant decline since mid-May 2021. Crypto analyst Lark Davis tweeted that nearly 11% of the Bitcoin supply transacted between the price range of $31k and $34k. Davis noted that panic selling had triggered further downfall in the Bitcoin price, leading to a cascading effect.
10.5% of the total supply of #bitcoin was transacted between 31 and 34k.
That means a lot of BTC could be panic sold if we head lower which of course ends up having a cascading effect as more panic sellers create more panic sellers. pic.twitter.com/FyheU3Ugz4
— Lark Davis (@TheCryptoLark) July 20, 2021
The overall cryptocurrency market is down 7%.
The recent bitcoin price crash is part of the broader market correction. The overall cryptocurrency market is down 7% in the last 24 hours, wiping out more than $100 billion from the market cap. The second-largest cryptocurrency Ethereum (ETH) is down 8.75%, falling under its previous support levels of $1750. One of the best performing cryptocurrencies of the year, Binance Coin (BNB), is down by 13%, now trading at $260. Cardano (ADA) is also down by 11%, trading at $1.0. Ethereum appears to be extending its fee dominance over Bitcoin by roughly ten times, with the primary cryptocurrency currently ranking just sixth by weekly fee generation.