After the price of Bitcoin fell to nearly $35,000, the bulls hesitated to buy on dips

On June 18th, Bitcoin (Bitcoin) On a day when traditional markets are facing downward pressure, the Fed’s comments on the possibility of raising interest rates have caused the dollar price to soar at the expense of risky assets and Treasury bills.

However, the Fed should not be blamed at all, because the fear of further decline in BTC has been going on for several weeks, and most of the discussion has focused on the impending death cross and what it means for the future of Bitcoin.

Today’s sell-off pushed the price of Bitcoin below the critical $36,000 support level, leading traders to predict that $32,500 is Bitcoin’s next stop before returning to the swing low of $30,000.

BTC/USDT 4-hour chart. source: Transaction view

These technical factors are combined with negative headlines in the news, such as Chinese authorities shut down cryptocurrency miners Or the nearest The “carpet pull” on the Iron Finance agreement Seeing the loss of cryptocurrency supporter and billionaire investor Mark Cuban, traders are worried about the current drop in Bitcoin prices.

Crypto fear and greed index. source: select.I

Because of these concerns, the cryptocurrency fear and greed index has dropped to 25, showing extreme fear and continuing the trend of the past month.

A surge in funds flowing into exchanges before the sell-off

Data from the on-chain data analysis company CryptoQuant shows that before this week’s drop from $41,000 to $36,000, the net flow of BTC to exchanges provided some warnings for careful traders. On June 15th, when the BTC price reached $41,300, the inflow of BTC to exchanges surged, and then fell by 15% in the next three days.

The net traffic of all Bitcoin exchanges. source: CryptoQuant

A keen analyst pointed out that there is a clear correlation between the whale activity of the Gemini cryptocurrency exchange in particular and some of the larger sell-offs experienced by the cryptocurrency market in 2021.

Since the net Bitcoin flow to the exchanges in the past few days has tended to balance, with the inflow being only slightly higher than the outflow, market participants are now waiting for where the price will go next as the terrible crossover point approaches.

related: After Bitcoin futures enters the spot premium, traders look for bearish signals

Smart money continues to accumulate

Although investors’ concerns are intensifying and some traders who bought between March and May highs are selling at a loss, the total supply of Bitcoin held by long-term holders reached a low in mid-May Continue growing.

The total supply of Bitcoin held by long-term holders. source: Glass node

According to crypto Twitter analyst William Clement III, recently On-chain data Indicates that BTC is oversold, “It is now at an important historical turning point in the main chain indicators.”

Clement suggested that long-term holders “continue to buy discounted BTC”, which helps offset short-term holders’ selling, and he pointed to the fact that “accumulation is getting stronger”.

According to cryptocurrency analysts and traders, overall, the short-term future of BTC is still at risk, because the previous death cross instance is followed by a retracement, similar to the “retracement before the cross” Rectangular capital.

Bitcoin retracement after death cross in 2019. source: Twitter

On the other hand, long-term data implies a more optimistic future, as whale wallets and long-term holders continue to increase their Bitcoin balances.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Every investment and trading action involves risk, and you should conduct your own research when making a decision.