Bitcoin price dives below $31K after lowest weekly close in 8 months

Bitcoin (BTC) fell below $31,000 support on Monday after sideways trading gave way to downside pressure. 

Fresh pain for BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $30,630 on Bitstamp on Monday.

Coming a day after Bitcoin’s lowest weekly close since December 2020, the price action underscored the sensitivity of a market with low volume and network fundamentals still in their recovery phase.

Traders had broadly predicted a move downward after Bitcoin had failed to hold on to support levels higher up, with the integrity of $30,000 itself being called into question.

“Volatility, finally for Bitcoin,” in-house trader and analyst Michaël van de Poppe summarized.

At the time of writing, BTC/USD circled $30,700 with daily losses at around 3%. A glance at buy and sell orders on major exchange Binance showed considerable demand remaining at $27,000 and upward, reducing the likelihood of a deeper dive beyond that area.

Among market participants, it was all about catching the likely price bottom.

https://twitter.com/inmortalcrypto/status/1415308992797106187?ref_src=twsrc%5Etfw

Earlier, van de Poppe had also suggested that the ultimate BTC price floor may not come as a result of a sudden dive or have clearly defined characteristics.

A daily close below $31,000, nonetheless, has not happened since January.

Altcoins suffer at the hands of Bitcoin bears

Bitcoin’s dive, meanwhile, sparked instant pain for altcoins, which often doubled the largest cryptocurrency’s hourly losses.

Related: Bitcoin sees second-longest bull market drawdown with BTC price ‘stuck’ at $30K

Ether (ETH) shed nearly 8% on the day to hit $1,800 support, highlighting a fragile altcoin environment still at the mercy of Bitcoin sentiment. 

A possible overall explanation lay at the door of the Grayscale Bitcoin Trust, which on Sunday completed a 16,000-BTC unlocking event, which only a day later could have an opportunity to impact the market.

Today, Grayscale CEO Michael Sonnenshein told CNBC in an interview that the regulatory discussion on Bitcoin exchange-traded funds is entering its ‘’final stages’’ and that the company is committed to turning GBTC into such a product.