Bitcoin price continues to see price dips as market remains in “Extreme Fear”

On the daily chart, Bitcoin price has broken the vital $30,000. The selling volume is high, which means that bears may have accumulated enough power in the sideways trend for a continued drop. At the time of writing, BTC is trading at $29,767, recorded an 8% drop in the past seven days.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price fell below $30,000, trading lower than the cryptocurrency has in a month

One of the alleged reasons for BTC dropping came from BlockFi receiving a shutdown order from the New Jersey Attorney General. The order indicated that the crypto-lending firm would no longer be allowed to accept interest rate accounts in the garden state.

This was one of many regulatory clampdowns for the cryptocurrency this summer. Last month, as AZCoin News reported, the Financial Conduct Authority said they would ban all in-country exchanges on Binance Markets Limited and China’s central bank forced the country’s key financial institutions to block all crypto transactions.

The crypto market had been in “Extreme Fear” for the longest stretch in a year. The Fear & Greed Index continues to show that market sentiments remain quite negative. Extreme fear has persisted in the market for a month. And now, it has dropped strongly from a week ago to place the indicator at 10 as fear grows across the market.

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Crypto Fear & Greed Index as of July 21 | Source: Alternative.me

However, despite the bearish signs, CryptoQuant analytics firm said that the flagship digital currency is not in a bear market now, unlike what many people think.

The Bitcoin MVRV ratio shows that a bear market has not arrived yet since the BTC price has not plunged as low as it was after the 2017 all-time high of $20,000.

“At the current range, $30,000, we have reached the same buy zone level since September 2020. Buying at this same level in the past cycle was seen between January to March 2017”, the CryptoQuant analytics stated.

The current rollback can be used as a good opportunity to accumulate, rather than being a bear market for Bitcoin.

“It does not sell at the bottom but prepares ammunition for the bottom. Short-term data offer the probability of test at support, good exposure opportunity.”

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Source: CryptoQuant

Nouriel Roubini, also widely known as Dr. Doom, always criticized Bitcoin as it goes up and gloats as it goes down. He published a tweet, said that as Bitcoin has plunged below the $30,000, all new investors that entered BTC after March this year have suffered losses.

He believes that, with the current fundamentals, Bitcoin should definitely fall much harder. However, Dr. Doom wonders if the “Tether pump & dump scheme” will help Bitcoin to recover as he alleges, as has happened in the past.

Other cryptocurrencies also dropped. ETH price tumbled to a three-week low of $1,779. But most of the coins in the top 20 CoinMarketCap are only showing slight drops of 5% on the day.

Besides that, the market also has notable news such as FTX closed a $900 million funding round. This brings the crypto trading platform to an $18 billion valuation. Then there was the fintech firm Titan saying it also raised $58 million in a funding round led by VC giant Andreessen Horowitz. At the same time, Rothschild Investment tripled their Bitcoin exposure since April, increasing their holdings of Grayscale Bitcoin Trust.

At the moment, many analysts believe that the more likely scenario is a retest of the $31,000, followed by a decrease to around $24,000.

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