Bitcoin falls to its lowest level in two weeks below the $32,000 level
Last Updated on July 17, 2021
The total market capitalization of Bitcoin and cryptocurrencies has lost more than $120 billion over the past two days, after being volatile since the beginning of this week, with bitcoin dropping to a 17-day low below $32,000.
The leading cryptocurrency was not the only one, but other cryptocurrencies also fell and suffered huge losses, as Ethereum traded below $2000 and Binance fell to the $300 level.
The cryptocurrency market appears to be struggling at its current levels, as the bulls fail to find enough momentum to move forward, and while most are charting moderate gains, the situation has remained largely unchanged in the past 24 hours.
Bitcoin drops below $32,000
During the first half of July, Bitcoin traded in a narrow range between $36,000 and $32,000, and despite the stabilization period, all indications are that a huge move is coming.
Volume for July has remained painfully low, especially over the past two weekends, which have seen the two lowest volume days. This, combined with the long period of consolidation, has many traders waiting for a big move ahead, which will dictate the next trend and could be in both directions, however, there are more bearish signals than bullish ones.
While last weekend recorded minimal trading volume, that did not stop Bitcoin from rallying, as it managed to rise from the $33,000 level to the $35,000 level, and although it struggled hard to break that level, it eventually failed. From completing its bullish momentum to get back to the downside rally and pull back to $33,000.
But it got worse since then, as the bearish curve took over and the leading coin fell below $32,000 for the first time since the end of June, hitting a 17-day low at $31,650.
But it managed to bounce back a bit later to settle above the $32,000 level, bringing the total market capitalization of Bitcoin to less than $600 billion, while its dominance in the cryptocurrency market increased to 46%, due to the significant losses incurred by other major cryptocurrencies.
Trading volume decreased
The leading cryptocurrency is also declining as investors wait for an upcoming opening of thousands of bitcoins held by GrayScale, the world’s largest crypto fund.
Meanwhile, the on-chain data for the coin is not encouraging, the data shows that the number of large bitcoin transactions has fallen to the lowest level since November 2020, while the volume of large transactions has also decreased, and the number of active bitcoin wallets and transactions has also declined.
Furthermore, trading volumes on the largest cryptocurrency exchanges such as Coinbase, Kraken, Binance, and Bitstamp fell by more than 40% in June, indicating that the demand for cryptocurrencies is dwindling.
This drop occurred as China stepped up its crackdown on digital currencies. It did so by intensifying its crackdown on miners in the country, which led to a sudden drop in hash rates. The country also directed its banking and other financial institutions to stop accepting and processing digital currencies.
One crypto market analyst says that the digital asset ecosystem has been punched in the face, so it is currently in a fierce struggle to survive, usually, when you have a big sell-off, investors are very scared and withdraw their money.
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