The bear market is retreating, but the price of Bitcoin is still below $35,000


Although the bulls showed strength in the early trading hours, Bitcoin (Bitcoin) The price is still fixed below the resistance level of $35,000 and cannot flip the 20-day moving average to support or ensure that the daily closing price is above this level.

Data from Cointelegraph Markets Pro with Transaction view Since the rebound to 35,400 USD on June 28, Bitcoin’s trading price has been between 33,850 USD and 35,000 USD, as the impact of China’s crackdown on Bitcoin mining continues to have repercussions throughout the market.

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

In addition to subverting the Bitcoin mining ecosystem, the Chinese government has also tightened local cryptocurrency exchanges, resulting in Close BTCChina. China also effectively Prohibition of trading in crypto derivatives Huobi exchange user.

Bitfinex BTC flows become the focus, while the sell-off continues

According to Glassnode data, the downward price movement in the past week “seems to have caused panic among long-term and short-term holders”, “as evidenced by the volatility of LTH-SOPR and the deep surrender of STH-SOPR”.

Bitcoin short-term and long-term holder SOPR. source: Glass node

Glassnode says:

“The losses realized by STH are only slightly lower than the surrender in March 2020. This week LTH is willing to spend tokens whose average cost fluctuates between US$920 and US$1630, which indicates a high degree of uncertainty.”

The further insight into current market conditions provided by CryptoQuant emphasizes Bitfinex’s Bitcoin inflow and outflow as a possible measure of market development.

According to CryptoQuant’s analysis, the market has seen “relatively high spot BTC flow derivatives”, and this change usually “means a turning point in the market.”

CryptoQuant emphasized that the recent increase seen in the average inflow of all Bitcoin exchanges (MA7) “indicates that the large deposits that led to the decline are coming to an end.” This observation is further supported by Bitfinex’s Bitcoin outflow. “This is It is believed to be the culprit of the recent downtrend.”

Cryptocurrency Twitter analyst William Clement III emphasized that the bears are now finding themselves at greater risk. He released the following tweet, pointing out that there have been negative funds for 11 consecutive days.

Bitcoin rally gives altcoins a sigh of relief

The price of most altcoins has improved because Bitcoin showed signs of life of more than $34,000, of which Ethereum rose by 15.7% (Ethereum) The price briefly pushed the top altcoin back above $2,100.

Daily cryptocurrency market performance. source: Coin 360

The best performer of the day was Populous (PPT), which surged 100% to an intraday high of $2.67, while IoTeX (IOTX), Kusama (KSM) and Compound (COMP) all rose 33%.

The overall market value of cryptocurrencies is now $1.402 trillion, and Bitcoin’s dominance rate is 46.1%.

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