Bitcoin price falls to $31K as traders prepare for a ‘rocky’ road and more downside
“When it rains, it pours” is an old saying finding new relevance in the cryptocurrency markets on May 9 as traders face another day of pain and the current price decline brings Bitcoin (BTC) to its lowest level in 2022.
Data from Cointelegraph Markets Pro and TradingView shows that the BTC selloff on Monday intensified as the trading day progressed with Bitcoin hitting a daily low of $31,000 as bulls scrambled to mount what amounted to a weak defense.
Here’s a look at some of the developments that led up to Monday’s price declines and what traders can look for as the crypto market heads deeper into bear territory.
Bitcoin bulls have struggled to establish a solid floor of support over the past couple of months because bears have been persistent in their drive to push the price lower.
Currently, BTC price down 50% from its all-time high in November and on-chain analysis firm Glassnode noted in a recent report that this decline “remains modest when compared to the ultimate lows of prior Bitcoin bear markets.”
As shown in the graphic above, the drawdown in July 2021 reached a peak of -54.2% while the “bear markets of 2015, 2018 and March 2020 capitulated at lows between -77.2% and -85.5% off the all-time high.”
Network profitability has also decline to levels that are similar to what was seen during the late-2018 and late 2019-2020 bear markets.
Glassnode said,
A deeper dive into the on-chain data shows that the capitulation by Bitcoin holders has intensified in recent weeks as the price has continued to trend lower.
Evidence for this capitulation can be found looking at the Bitcoin exchange fee dominance, which measures what percentage of the fees on the Bitcoin network was paid to deposit BTC to an exchange.
According to
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