Bitcoin price fell below $33,000, but on-chain data suggests that BTC is increasing


As the pressure on the market from China’s crackdown on cryptocurrencies began to fade, Bitcoin (Bitcoin) Computing power is beginning to show signs of recovery, traders are now paying attention to how prices will be affected this week Unlock more than 550 million US dollars Grayscale’s GBTC stock value.

Data from Cointelegraph Markets Pro with Transaction view It shows that the early morning downtrend of BTC on July 12 continued into the afternoon, because after the bears controlled the market, the price of BTC fell below the $33,000 support level.

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

On Monday, several media reported that the company had Submit three Form 10 registration statements publicly With the United States Securities and Exchange Commission (SEC).

This brings the number of publicly reported trusts managed by Grayscale to 5, among which the Bitcoin Cash trust (Bitcoin cash), Ethereum Classic (and many more) And Litecoin (LTC) Join the Bitcoin and Ether Trust submitted earlier (Ethereum).

Bitcoin computing power shows signs of recovery

As BTC mines closed nationwide and moved their operations overseas, China’s crackdown on Bitcoin mining caused the network’s hash rate to drop by 55%.

According to a recent report by Glassnode, due to the successful resettlement of hardware by Chinese miners, approximately 29% of the lost computing power is now back online, and “previously obsolete hardware has been cleaned up and new lives have been found.”

Average Bitcoin hash rate. source: Glass node

After nearly a month of miners’ sell-off, the miners’ net position change indicator now shows that they have returned to the accumulation mode, indicating that “seller pressure from offline miners is offset by the accumulation of operating miners.”

Further evidence of the reduction in selling can be found in the transaction flow data of BTC. The number of BTC withdrawn from the exchange in the past two weeks exceeded the amount deposited.

All Bitcoin exchanges are netflow. source: CryptoQuant

Due to the increase in outflows, between June 28 and July 11, the bitcoin reserves held by all exchanges decreased by more than 16,100 BTC.

Bitcoin all foreign exchange reserves. source: CryptoQuant

From a macro perspective, many people interpret this as a bullish development for Bitcoin, as token holders seem to be withdrawing BTC for long-term storage as the market waits for the next big rise.

related: As shorts soared and Bitcoin fell below $33,000, traders warned that Bitcoin prices would be “violently” squeezed

Altcoins are under pressure

As the BTC’s pullback caused the overall market to weaken, altcoins were under pressure on Monday as a whole.

Daily cryptocurrency market performance. source: Coin 360

As the selling intensified into the afternoon, the price of ether (Ethereum) Fell to the support level of $2,000 after the trader left the market hastily.

Although most of the market was at a loss that day, a few projects successfully broke through the noise and made gains on July 12, Metal (MTL) rose by 18%, and Revain (REV), Stratis (STRAX) and Injective Protocol (INJ) up 12%

The overall cryptocurrency market value is now $1.354 trillion, and Bitcoin’s dominance rate is 45.5%.

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