As Grayscale’s giant BTC unlock day approaches, the price of Bitcoin drops below $34,000

Bitcoin (Bitcoin) Fell to a local low of $33,750 on June 20, as concerns about weak support levels proved to be valid.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro with Transaction view It shows that BTC/USD quickly fell below 34,000 US dollars on Sunday after starting to oscillate over the weekend.

Continuing to fall from the resistance level close to $40,000, the low volume highlights little interest in protecting price action well above $30,000.

Binance’s order book data confirmed this on the same day. Sellers eliminated the major buying barriers above $36,500 and kept the next important support level at $31,000.

As of June 20, BTC/USD buy and sell orders on Binance. Source: Material Indicators/ Twitter

Among traders, the conversation mainly revolved around the so-called “death cross” on the daily and hourly charts of BTC/USD that took place on Friday.This refers to the 50-day moving average crossing the 200-day moving average, which is Traditionally thought Become an ominous omen of price stability.

Historically, not all death crosses lead to losses-as Cointelegraph Report, Some are followed by a bullish phase.

“Death crosses are overrated,” popular trader Crypto Ed to sum up Earlier this week.

“The only thing it tells you is that you opened a short position very late. Most of the downward movement has already occurred before the crossover.”

in a Individual comment, Blockstream CEO Adam Back (Adam Back) also put Twitter users responsible for dealing with the negative impact of the death cross incident.

BTC/USD 1-day candlestick chart showing “death cross”. Source: TradingView

However, at the time of writing, Bitcoin still fell 5% on the day, and the 3-day drop totaled more than 14%.

The number of cleared exchanges continues to increase, Nearly 150 million U.S. dollars After a rapid drop of around $800, it disappeared in just an hour.

Grayscale investors get selling opportunities

Another theory of price direction involves the upcoming “unlocking” phase of the institutional giant Grayscale.

As Cointelegraph Pointed out earlier, The next few weeks will see a large amount of investor funds released after the 6-month lock-up period. As qualified investors seek to offset some of their losses (realized after selling their GBTC shares), selling pressure may increase as a result BTC is sold on the market.

In contrast, there should be a significant lack of seller activity afterwards.

Grayscale unlock event chart. Source: Bybt

Fundamentals see an increase in retracements

At the same time, the observation of the fundamentals of the Internet has also attracted additional attention. Computing power, Already changing thanks change In the distribution of miners, it is less than 100 exahash/s (EH/s), and has previously reached a peak of 168 EH/s.

related: Analysts warned that if stocks fall, Bitcoin may fall by the price level of $30,000

Although other estimates are inaccurate, they also describe a downward trend in hash rate.

Chart of Bitcoin’s 7-day average hash rate.Source: Blockchain

difficultIt has just experienced two consecutive downward adjustments and is expected to fall by about 9.7% for the third time in the next 9 days.

The last time Bitcoin experienced three consecutive downward difficulty adjustments was in the surrender phase of a bear market before the end of 2018.