Bitcoin price drops 3% to ten-day lows as Ethereum inches closer to $1,000

FILE PHOTO: Representation of cryptocurrency Bitcoin is seen in this illustration

Bitcoin (BTC) lost 3% in an hour and Ether (ETH) drifted toward $1,000 on June 30 as pessimism took control of crypto markets.

Data showed BTC/USD hitting $19,224 on Bitstamp during Asian trading, its lowest since June 19.

A lack of momentum on upticks combined with a failure to reclaim critical support at the 200-week moving average set the scene for fresh weakness on Bitcoin. The largest cryptocurrency thus dived to the support area defined a day prior by analyst Michaël van de Poppe.

In fresh analysis on the day, meanwhile, traders toyed with the idea of a relief bounce towards $20,000.

“We’re looking for a sweep of the lows and a reclaim before we consider longing because this is a very strong downtrend and we first want to see some strength,” trading platform Cryptop told Twitter followers in part of a new update.

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News that the United States Securities and Exchange Commission (SEC) had rejected a request by Grayscale to turn its Bitcoin investment instrument, the Grayscale Bitcoin Investment Trust (GBTC) into an exchange-traded fund (ETF) meanwhile did not help sentiment.

Regulatory pressure had also come from the European Union, which voted to increase restrictions on crypto movements in the bloc.

“The agreement extends the so-called ‘travel rule’, already existing in traditional finance, to cover transfers in crypto assets. This rule requires that information on the source of the asset and its beneficiary travels with the transaction and is stored on both sides of the transfer,” a press release about the move explained.

“Crypto-assets service providers (CASPs) will be obliged to provide this information to competent authorities if an investigation is conducted into money laundering and terrorist financing.”

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Sentiment gauge the Crypto Fear & Greed Index stood at 11/100, or “extreme fear,” at the time of writing.

Altcoins predictably continued the depressed mood on the day, with ETH/USD targeting $1,000 support for the first time in ten days.

Only major exchange Bitfinex’s UNUS SED LEO (LEO) token continued to buck the trend conspicuously, gaining 3.5% on the day and extending monthly returns to above 20%.

The platform had previously made the news for the exponential growth of its BTC/USD long positions, these since plateauing in the second half of June.

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