If Bitcoin (BTC) Loses This Critical Support Zone, A Bloodbath is on the Cards

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Bitcoin’s (BTC) price today lost another key support of $32.4k, falling from its daily high of $33,159 to a daily low of $31.556. The top cryptocurrency had built strong on-chain support of $33K last week, but couldn’t hold onto it amid low liquidity in the market. BTC has consolidated under $35K for the majority of the time in the last two months after the massive sell-off in May.

The final support zone for the top cryptocurrency now lies in the $31k-$31.5k price zone, failing which BTC could slump below $30K towards $29K-$24K support.

The market volatility is on the decline while stablecoin inflow has started to rise again. On-chain metrics suggest a bullish momentum is building, but a lack of retail support has led to low market activity and volumes.

If Bitcoin manages to close above $31.5K, it could form a triple bottom. A triple bottom is considered a bullish chart formation, following which the price sees a trend reversal.

Top Crypto Exchanges Lose 50% Trading Volume

A recent study into the May market crash suggested a massive decline in retail volume in the following month. The top 15 crypto exchanges saw a 51.6% combined average decline in trading volume. Bitcoin weekly volume on Binance reached the lowest since October 2020.

Institutional interest continues to peak despite dominant bearish sentiment in the market with several wall street giants joining the Bitcoin league this month. Yesterday S&P 500 launched five more crypto indices for institutional investors to choose from. Many analysts have predicted that despite the ongoing bearish sentiment, BTC has another leg of the bull run left if it manages to break out of its prolonged price range.

Bitcoin Whale Accumulation on the Rise

The price scenarios might give a bearish appearance but, key on-chain metrics highlight a growing bullish sentiment. Bitcoin whales have started to accumulate BTC again as the whale address has registered a massive spike.

The Bitcoin whale who sold their BTC holding at $60K has accumulated 17,000 BTC since then in anticipation of another bullish burst.

Another bullish sign is bitcoin miner accumulation, who have stopped sending their holdings onto exchanges to sell. This indicates they are expecting the prices to rise higher.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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