Following Bitcoin’s $30K support loss, crypto has joined stocks in a state of “extreme panic.”

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The “extreme fear” surrounding Bitcoin’s dip below $30,000 is highlighted by a tumble in sentiment in both crypto and traditional markets.

After losing support on Tuesday, Bitcoin (BTC) failed to reclaim $30,000 as Fear & Greed indexes rushed to the basement.

 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC’s price stays below $30,000 waterline

Data from TradingView showed BTC/USD continued trading in the $20,000–$30,000 zone on Tuesday.

The world’s largest cryptocurrency had a wild night, quickly adding to existing losses to end the day with negative returns of -6 percent.

The move coincided with a deterioration in sentiment in traditional markets. On Tuesday, the Fear & Greed Index, which measures market sentiment using a variety of criteria, plummeted into the “extreme fear” zone, scoring 17/100.

Simultaneously, the cryptocurrency equivalent, the Crypto Fear & Greed Index, raced to catch up, plunging to 19/100, which is also known as “severe fear.”

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Last month, crypto Fear & Greed hit new lows of just 10/100, while the traditional counterpart’s score has halved in a week.

 

Crypto Fear & Greed Index as of July 20. Source: Alternative.me

Perhaps predictably, traders were more than cautious.

“Rejects $32.3K, Rejects $31K, and now at the next support zone,” Cointelegraph’s Michaël van de Poppe warned.

“No real run of volume yet, through which the liquidity tap should still happen or we’ll see a test at $24K for Bitcoin.”

BTC/USD scenario with support and resistance zones. Source: Michaël van de Poppe/Twitter

On Monday, fellow trader and analyst Rekt Capital summed up the grim picture on spot markets, concluding that downside was more likely to prevail. In the event, BTC/USD fell almost exactly to his target zone.

“BTC has lost Weekly support (black) and convincingly lost the blue 50-week EMA,” he summarized on Twitter alongside the relevant chart.

“BTC has failed to preserve the bullish momentum that originated in the green box. In fact, sell-side pressure may mount on BTC and may force a return to the green area soon.”

BTC/USD scenario with support and resistance zones. Source: Rekt Capital/Twitter

Altcoins double daily losses

A look at buy and sell positions on major exchange Binance, meanwhile, showed support remaining in place between $27,000 and $29,000 despite the price dip.

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Resistance, on the other hand, was thin below $35,000, providing a silver lining for bulls hoping for a swift rebound should the market find fuel for a U-turn back above the $30,000 mark.

BTC/USD buy and sell levels (Binance) as of July 20. Source: Material Indicators/Twitter

As Bitcoin plummeted, altcoins exacerbated existing weakness, with many of the top 50 cryptocurrencies by market capitalisation losing 20% of their value in a week.

On Monday, the largest altcoin, Ether (ETH), lost its longer-term 2021 uptrend and continued to trade below $1,800.

 

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