Data from Cointelegraph Markets Pro with Transaction view It showed that before the bulls came to provide support and pushed the price back to 30,850 US dollars, a wave of noon selling pushed the price of BTC to a low of 30,400 US dollars.
The entire market continues to face an uphill battle, as the outflow of miners after China’s crackdown on the mining industry has led to Fourth consecutive negative adjustment In the difficulty of Bitcoin mining, this number has fallen by nearly half since mid-May.
Close to $31,700 in volume
Glassnode’s latest report provides insight into the current state of the Bitcoin network. The report lays the foundation for price distribution by looking at UTXO. This indicator can identify an overview of on-chain transaction volume in different price groups.
Current data shows that 10.5% of the circulating supply of BTC is traded between US$31,000 and US$34,300, which is the highest level since the price of US$11,000.
Although this indicates that the current level of trading volume is at a healthy level, it is important to note that if the BTC price falls below, the next important support levels are $26,500, $23,300, and $18,800.
Institutional interest in BTC dissipated
The market-wide correction in May led to a sharp drop in the interest of institutional investors. As the price of BTC strives to climb, institutional investors now seem to be in a risk management mode.
Evidence of a decline in interest can be found by looking at the market price of GBTC (continuing to trade at a discount of -11.0% to -15.3%), or by observing the net inflow of ETFs that have slowed significantly. Data from Glassnode shows that the net outflow of this ETF is -90.76 BTC, which is the largest outflow since mid-May.
Although institutional activities have weakened, BTC’s on-chain deposits to exchanges continued to exceed 28,700 BTC, the largest inflow in a month and a half, which occurred on July 16.
Inflows during consolidation and adjustment periods are generally regarded as negative developments because they can lead to increased selling, which can lead to short-term price collapses.
Glassnode also pointed out that there has been a net inflow of 1,780 BTC into over-the-counter (OTC) trading desks in the past two weeks, which is “contrary to the structural outflow trend that has occurred since November 2020”.
“Whether this net inflow is only a short-term impact or an early sign of a reversal in the balance of supply and demand remains to be seen.”
Covid-19 fears affecting the market
Due to the surge in Covid-19 cases leading to a decline in global financial markets, the cryptocurrency market was not the only market facing downward pressure on July 19.
The S&P 500, Dow Jones and Nasdaq indexes closed down 1.59%, 2.09% and 1.06% respectively throughout the day.
The overall cryptocurrency market value is now $1.245 trillion, and Bitcoin’s dominance rate is 46.3%.
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