Bitcoins fall below $ 34,000 as the day of the giant grayscale unblocking of BTC approaches

Bitcoin (BTC) fell to local lows of USD 33 750 on 20 June, as concerns about the weak level of support proved to be justified.

1-hour BTC / USD spark plug chart (bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro and TradingView on Sunday, after torn behavior at the beginning of the weekend, it quickly showed a drop in BTC / USD below $ 34,000.

The drop in resistance to nearly $ 40,000 continued, with low volumes highlighting little interest in protecting the price campaign well above $ 30,000.

The order data from Binance confirmed this on the day the retailers cleared out a large wall of purchases over $ 36,500 to keep another significant level of support at just $ 31,000.

BTC / USD orders to buy and sell at Binance from June 20. Source: Material indicators / Twitter

Among the traders, conversations mostly revolved around the so-called “death cross” in the daily and hourly BTC / USD charts, which took place on Friday. This refers to a 50-day moving average exceeding 200-day moving average and is traditionally considered be a bad sign for price stability.

Historically, not all crosses of death have led to losses – like the Cointelegraph reported, some are followed by a bull phase.

“The cross of death is overrated,” favorite businessman Crypto Ed summarized earlier in the week.

“The only thing that tells you is that you’re very late to open your shorts.

IN separate comment, Adam Back, CEO of Blockstream, also took Twitter users on the task of overcoming the negative skew caused by death events.

1-day BTC / USD candlestick chart with a “cross of death” displayed. Source: TradingView

At the time of writing, however, bitcoins were still trading down 5% per day, while the 3-day losses totaled 14%.

Liquidations grew on stock exchanges with almost $ 150 million positions disappeared in a single hour after a flash of around $ 800.

Grayscale investors will be given the opportunity to sell

Another theory about the direction of prices involved the impending phase of “unblocking” in the institutional giant Grayscale.

Like a Cointelegraph previously mentionedIn the coming weeks, after a six-month blocking period, a large proportion of investment funds will be released, with the potential to increase selling pressure as accredited investors seek to offset some of their losses (realized after the sale of GBTC shares) by selling BTC on the spot market.

Then, on the contrary, there should be a significant lack of sales activity.

Grayscale unlock event table. Source: Bybt

The basics see increasing returns

Looking at the basics of the network, meanwhile, has given rise to another cause for concern. Hash rate, already in the flow thanks shifts in the distribution of miners fell below 100 exahashes per second (EH / s), having previously peaked at 168 EH / s.

Related: Analysts warn that bitcoins could lose a price level of $ 30,000 if stocks become available

Other estimates, although inaccurate, also showed a declining hash rate trend.

Graph of average hash rates of bitcoins over 7 days. Source: Blockchain

Difficulty, fresh from two consecutive downward adjustments, was on its way to a third-third down by about 9.7% the next in about nine days.

Last bitcoins saw three downward adjustments of difficulty in a row during the surrender phase of the previous bear market in late 2018.

Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *