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The latest negative trend sees $32,600 pass through, with selling pressure visible as BTC/USD falls another 2.7 percent.
As bulls failed to establish their argument for further gains, Bitcoin (BTC) dropped to support that may determine a $30,000 retest on July 13.
Bitcoin bulls see $33,000 slip away
Data from TradingView showed another lackluster performance for BTC/USD on Tuesday, with local lows at $32,240 on Bitstamp.
This week, the range above $33,000, considered as the support level to maintain as a springboard for bullish continuation, was wobbly at best. Monday witnessed a short drop below, with the rebound just lasting 18 hours.
At the time of writing, $32,500 was a focal point, with Bitcoin rebounding below levels one trader believes are required to avoid a return to closer to $31,000.
“The critical support that I’ve derived here is the area around $32,600-$32,900, which you preferably want to see sustain as support to avoid another test of the lows,” Michaël van de Poppe explained in an update earlier on Tuesday.
With that region absent for the time being, negative sentiment seems likely to dominate on lower timeframes.
Crypto Ed, a fellow trader, even posted charts connecting current price behaviour to the buildup to Bitcoin’s bear market capitulation event in December 2018, when it fell to just $3,100.
— Crypto_Ed_NL (@Crypto_Ed_NL) July 13, 2021
That said, fundamentals continued to stabilize after seeing local bottoms of their own. The hash rate was above 91 exahashes per second on the day, while difficulty continued to avert a fresh record-breaking drop at this weekend’s readjustment.
Prospective U.S. Bitcoin ETF gets banking support
Elsewhere, news that BNY Mellon would be providing banking services for a potential Bitcoin exchange-traded fund (ETF) from Grayscale failed to lift the mood.
A US ETF has yet to get regulatory approval, with a total of 1 presently under review.
Even if it were to start, analysts are divided on the influence an ETF would have on Bitcoin if it were to operate in such a big market.
Noting the impact of a gold ETF debut in the United States in 2005, prominent Twitter analyst Lark Davis indicated that the path would be obvious.
“It essentially kick started a 7 year bull run,” he summarized.
In contrast to crypto markets, the upcoming release of the July consumer price index survey, which focuses on inflation, has boosted equities. Gold gained in lockstep, with the XAU/USD pair rising 0.7 percent to $1,813.