The world’s largest crypto Bitcoin (BTC) continues its downward journey falling under it another crucial support of $30,000. At press time, Bitcoin is down 6.09% trading at $29,598 with a market cap of $555 billion. The price crash comes as the unique number of addresses interacting with the Bitcoin blockchain has been on a constant decline since mid-May 2021.
As per crypto analyst Lark Davis, nearly 11% of the Bitcoin supply transacted between $31k and $34k. The analyst notes that panic selling has triggered further downfall in the Bitcoin price which could lead 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 $30K support was crucial for Bitcoin to hold. Technical charts suggest a successive correction for a dip under the next support levels. The next consecutive Bitcoin support levels to watch out for are $28K, $26K, $22K, and $19K.
— buckwhitzer (@buckwhitzer) July 20, 2021
Crypto Market Down 7% Losing $100 Billion
The recent BTC 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.
Ethereum (ETH) is down 8.75% falling under its previous support levels of $1750. Binance Coin (BNB) is down by 13% now trading at $260. Cardano (ADA) is also down by 11% trading at $1.0.
The broader market correction follows the steep fall on Wall Street on Monday, July 19. Dow Jones (DJIA) tanked over 700 points as fears of rising cases of the COVID-19 delta variant put the market under pressure. This has been one of the steepest single-day corrections of the index since October 2020.
The cryptocurrency market has larger followed by the movement on Wall Street. On the other hand, institutional players and whales have continued to stack up more supplies amid this correction. Over the last weekend, a single whale purchased nearly $1 billion worth of BTC. This whale added around 30,000 Bitcoin across 18 wallets.
At the same time, investment institutions like Rothschild have accumulated more Bitcoin through derivate products. As CoinGape reported, Rothschild purchased over 100K shares of the Grayscale Bitcoin Trust (GBTC) in the last quarter.