Bitcoin dropped below $30,000 during the Friday morning Asian trading session. The asset had lost 1.5% on the day in a fall to an intraweek low of $29,750.
It is the first time this month BTC has dropped below $30K following four separate rejections at resistance since it crossed the price barrier on June 2022.
Renowned analyst Willy Woo said that “Mean reversion forces now dominating Bitcoin price action” on July 7.
“Sideways or down is easier than up. Fundamentals suggest we need a phase of cool down to reset things.”
Mean reversion forces now dominating #Bitcoin price action.
Sideways or down is easier than up.
Fundamentals suggest we need a phase of cool down to reset things. pic.twitter.com/N7USKlwG3d
— Willy Woo (@woonomic) July 7, 2023
Bitcoin Facing Heavy Resistance
The second major failure to break resistance at $31K could result in the formation of a double-top chart pattern. If this scenario plays out, Bitcoin prices could retreat to support down at the high $24K zone again.
Other analysts have echoed the sentiment that further downsides could be on the cards.
— Cold Blooded Shiller (@ColdBloodShill) July 6, 2023
On July 6, Glassnode reported that short-term holders are recording elevated levels of exchange interaction. They have sent more than 617,000 BTC to exchanges over the past three weeks.
Market sentiment also appears to be waning slightly. The ‘fear and greed index‘ has fallen towards neutral territory at 55 from a high of 64 earlier this week.
Nevertheless, some analysts remain positive, with Josh Rager predicting that “pullbacks won’t be this deep now” and that people were “overthinking” the notion of a correction to $24K.
Rager said this sentiment regarding a $24K correction was quite popular, but “people are overthinking it.”
He added before saying that if BTC did return to $25K again, “it won’t be until later on in the year after more upside before so.”
“With the Black Rock ETF with a real possibility of being approved by mid-August – I lean to more upside before a major pullback. The markets going to do what is going to do but it’s hard to trump the current Bitcoin fundamentals.”
However, these comments came when BTC was still trading above $31K.
Elsewhere on Crypto Markets
Crypto markets have lost a further 1.3% on the day in a fall to $1.21 trillion as things cool off.
BTC was hovering around the $30K level at the time of writing but had registered losses for the past four days, aside from one spike on June 6.
Ethereum was hit even harder with a 3.2% slide to $1,850 at the time of writing, and the altcoins were a sea of red.