Bitcoin (BTC) price continued its downtrend Wednesday, ahead of testimony from Federal Reserve Chairman Jerome Powell.
Spot BTC/USD exchange rate fell to its seventeen-day low of $31,600 following a 3.46% intraday dip. Meanwhile, CME futures tied to the pair plunged 3.41% to $31,515, extending their week-to-date losses to 9.5%.
Bulls step in at $31.5K to buy the Bitcoin dip. Source: TradingView
Bitcoin had powered to $35,000 at the beginning of July, as bulls continued to defend support levels around $30,000 against each downside attempt.
Independent market analyst Will Clemente noted that entities with a low history of selling kept absorbing Bitcoin at lower levels from speculative traders, adding that the strategy is in the process of effectively removing a good BTC supply out of the market.
“Given no capitulation event, in my humble opinion, it is a matter of “when” the re-accumulation process will be finished rather than “if,” Clemente wrote.
“Once the process completes, the market would experience a supply shock.”But…