Although the bulls made a show of force in the morning trading hours, Bitcoin (BTC) price is still below the USD 35,000 resistance and unable to flip the 20-day moving average to support a daily close above that level or to secure.
Data from Cointelegraph Markets Pro and TradingView since rallying to $ 35,400 on June 28, Bitcoin has traded between $ 33,850 and $ 35,000 as the impact of China’s crackdown on BTC mining continues on Market reverberation.
Not only did China’s government turn the Bitcoin mining ecosystem upside down, it also turned the screw on local cryptocurrency exchanges, resulting in the closure of BTCChina. China has also effectively banned crypto derivatives trading for Huobi exchange users.
Bitfinex BTC flows come into focus as sales continue
According to data from Glassnode, the downward movement last week appears to have “triggered a panic” among both long and short term holders, as evidenced by volatility in LTH-SOPR and deep surrender in STH-SOPR “.
Glass knot said:
“STHs realized only slightly fewer losses than the surrender event in March 2020. LTHs were willing to issue coins with an average cost base that fluctuated between $ 9.2,000 and $ 16.3,000 this week, indicating a high level of uncertainty . “
Further insights into the current market conditions offered by CryptoQuant highlighted the inflows and outflows of Bitcoin at Bitfinex as a possible yardstick for market development.
Hoping for a quick turnaround
Read more https://t.co/xw0v70LMO5 pic.twitter.com/tziBkJgadI
– CryptoQuant.com (@cryptoquant_com) June 28, 2021
According to CryptoQuant’s analysis, the market has seen a “relatively high derivative to spot BTC flow,” a change that usually means “a turning point” in the market.
CryptoQuant highlighted that the recent rise in the mean of Bitcoin wallet inflows (MA7) “shows that the large deposits that caused the decline are coming to an end,” an observation further supported by Bitcoin outflows from Bitfinex “Which have been considered”. the main culprit of the recent downtrend. “
The increasingly risky situation the bears now find themselves in was highlighted by crypto Twitter analyst William Clemente III, who posted the following tweet pointing to 11 straight days of negative funding.
Funding has now been negative for 11 days in a row.
Translation: Shorts pay longs to keep their positions open. pic.twitter.com/PkGJ8LGPPz
– William Clemente III (@WClementeIII) June 28, 2021
Bitcoin rally brings relief to the altcoins
Most altcoins saw a turnaround in prices when Bitcoin showed signs of life above $ 34,000, including a 15.7% spike in ether (ETH) price that briefly brought the top altcoin back above $ 2,100.
The day’s best performance was Populous (PPT), which climbed 100% to an intraday high of $ 2.67, while IoTeX (IOTX), Kusama (KSM) and Compound (COMP) all recorded 33%.
The total market cap of the cryptocurrency is now $ 1.402 trillion and the dominance of Bitcoin is 46.1%.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.