Bitcoin (BTC) lost 3% in an hour and ETH (ETH) drifted towards $1,000 on June 30 as pessimism gripped the cryptocurrency markets.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Traders Look to ‘Sweep the Lows’ for Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $19,224 on Bitstamp during Asian trading, its lowest level since June 19.
The lack of momentum on the upside coupled with the failure to reclaim crucial support in the 200-week moving average set the scene for fresh weakness in Bitcoin. Thus, the largest cryptocurrency dived into the support area identified the day before by Cointelegraph contributor Michael van de Poppe.
In new analysis for the day, meanwhile, traders played up the notion of a bounce back towards $20,000.
“We are looking for a sweep of the dips and a recovery before we consider longing as this is a very strong downtrend and first we want to see some strength,” the Cryptop trading platform told Twitter followers in part of a new update.
The news that the US Securities and Exchange Commission (SEC) denied Grayscale’s request to convert its Bitcoin investment vehicle, the Grayscale Bitcoin Investment Trust (GBTC), into an exchange-traded fund (ETF) at the same time did not help the sentiment.
Regulatory pressure also came from the European Union, which voted to increase restrictions on cryptocurrency movements in the bloc.
The agreement expands the so-called “travel base,” which already exists in traditional finance, to cover transfers in crypto assets. This rule requires that information about the originator and beneficiary of the asset travels with the transaction and is stored on both sides of the transfer,” explained a press release about the move.
“Crypto Asset Service Providers (CASPs) will be required to provide this information to the relevant authorities if a money laundering and terrorist financing investigation is conducted.”
A gauge of sentiment The Crypto Fear & Greed Index is at 11/100, or “extreme fear,” at the time of writing.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
UNUS SED LEO Gains with Long Bitfinex Price Cooldown
Altcoins are expected to continue their depressed mood today, with ETH/USD targeting support at $1,000 for the first time in ten days.
Related: Price Analysis 6/29: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, LEO
ETH/USD (Bitstamp) one day candle chart. Source: TradingView
Bitfinex’s major exchange UNUS SED LEO (LEO) token continued to clearly reverse trend, gaining 3.5% on the day and expanding monthly returns to over 20%.
The platform had previously released news of the exponential growth of its long positions in BTC/USD, since it settled in the second half of June.