A failure to retain $31,000 would mean that $29,000 and then $24,000 are on the menu, says Michaël van de Poppe.
Bitcoin price tumbles to ‘final support’ as trader warns of $24K BTC price targetMARKET UPDATE
Bitcoin (BTC) dropped to its “final support zone” above $31,000 on July 15 as a low grind downward brought fresh predictions of a BTC price crash.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance debacle spreads as $32,000 falls
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting fresh local lows of $31,550 on Thursday.
The pair had made little progress overnight, falling further as Italian lawmakers said that major exchange Binance was unauthorized to trade in their jurisdiction.
The latest in a series of setbacks for the exchange, a spokesperson nonetheless told the mainstream media that its operations were unaffected by the announcement.
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously,” the spokesperson commented, quoted by Reuters.
As such, there remained little cause for optimism among spot traders. For popular trader Michaël van de Poppe, $31,000 represented Bitcoin’s last hope of avoiding a more series dip.
“Bitcoin didn’t hold the $32.4K level as support and dipped lower, through which it’s facing the final support zone to hold (the $31-31.5K region),” he summarized earlier on the day.
“If this is lost, $29K and $24K are the next zones.”
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter
The price headache is being exacerbated by a conspicuous lack of interest among investors, with low volumes meaning a sustained bullish uptick is unlikely.
Related: ‘It’s fine’ to buy Bitcoin as gold substitute, says Trump ex-Treasury Secretary Mnuchin
As data from on-chain monitoring resource Glassnode revealed, however, it may be a seasonal, rather than an emotional phenomenon.
“Investors aren’t selling, they are simply on holiday,” co-founders Yann Allemann and Jan Happel argued, pointing to a significant reduction in exchange transaction fees.
Bitcoin total exchange transaction fees annotated chart. Source: Yann & Jan/ Twitter
As Cointelegraph reported, further data shows that accumulation is underway even by investors who sold when BTC/USD hit $30,000 on the way to current all-time highs.
On-chain data shows two dramatic declines in the Bitcoin reserves held by a Canadian Bitcoin fund but there’s a catch.
Record outflows from Canada’s biggest Bitcoin fund see BTC reserves drop by 50% MARKET ANALYSIS
A Canada-based Bitcoin fund, operated by 3iQ Corp, has witnessed a dramatic decline in its BTC reserves since June.
Literally named the Bitcoin Fund (QBTC:CN), the closed-end investment product, was holding around 24,000 BTC in its vaults in early June. However, as the monthly session progressed, the reserves first dropped to below 16,000 BTC in a dramatic, straight-line decline.
Later, another massive withdrawal pushed the Bitcoin Fund’s BTC reserves to around 13,000 BTC, according to on-chain data from South Korea-based analytics firm CryptoQuant.
QBTC vs. GBTC Bitcoin reserves (red) vs. BTC price (black). Source: CryptoQuant
However, the withdrawals from the QBTC fund across June coincided with an inflow spike in 3iQ’s exchange-traded fund (ETF), called 3iQ CoinShares Bitcoin ETF (BTCQ). In detail, the Canadian ETF attracted inflows of 2,088 BTC in June 2021 against the QBTC outflows of 10,432 BTC in the same month.
ByteTree CIO, Charlie Morris, noted that 3iQ allowed its clients to convert their QBTC units into 3iQ CoinShares Bitcoin ETF. He added that the growth of crypto ETFs across major stock exchanges—which allows redemptions and withdrawals—prompted investors to reduce their exposure in the closed-ended fund.