Repression of China; Return price on the climb

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Bitcoin has not been short of news and announcements as the seminal cryptocurrency tries to recover from the May rout and June outperformance against other major coins.

The fundamental look

Ahead of the 100th anniversary of the Chinese Communist Party, the government is continuing its crackdown on the use of Bitcoin in the country. On Tuesday, July 6, the People’s Bank of China cautioned local businesses against providing any support or service to cryptocurrency-related services, this time focusing its attention on providing software.

Some see the crackdown as an effort to prevent embarrassing events from overshadowing the upcoming anniversary and possibly tackling capital flight. Nonetheless, the crackdown could continue to put pressure on BTC prices in the near term. (See the comparison of Bitcoin stocks on TipRanks)

One of the most interesting results of the exodus of miners from China was the major 28% downward adjustment in mining difficulties on July 3. As the network hash rate fell to its lowest point since September 2019, operational miners have likely seen a significant increase in profitability. This is because the adjustment made mining easier.

In the adoption news, payment service provider Allied Payment Network has embraced Bitcoin after partnering with New York Digital Investment Group. The provider will now offer Bitcoin payment services to its network of customers and customers, meaning that connected financial institutions can now offer their customers the ability to buy, hold and sell Bitcoin. Additionally, Allied has announced plans to add Bitcoin to its corporate treasury account.

The other major event worth mentioning is the passing of Mircea Popescu, a famous Bitcoin agitator and maximalist known by the nickname Father of Bitcoin Toxicity. Popescu is said to have drowned off the coast of Costa Rica. The mysterious individual has previously threatened to throw a million Bitcoin into the market if any proposed changes are made to the network, earning him the previously mentioned nickname. However, if this is true, there are concerns that his Bitcoin holdings may reach the market or be lost forever.

The story continues

Whales of the week

A whale is a term used in cryptocurrency to describe a person or entity that holds a large amount of bitcoin. Whale movements can potentially manipulate bitcoin valuations. Here are some of the movements of the last week in large amounts of bitcoin:

July 1: 6,000,000 BTC moved from unknown wallet to Bitstamp

July 2: 2,217,600 BTC moved from multiple wallets to OKEx

July 2: 2,772,087 BTC moved between unknown wallets

July 5: 2123.964 BTC moved between unknown wallets

July 5: 3394.681 BTC moved between unknown wallets

July 6: 2098.092 BTC moved between unknown wallets

The technical socket

Between July 1 and July 7, Bitcoin’s performance against the US dollar was positive, ending up 3.95% while underperforming Cardano (+ 6.66%) and Ethereum (+ 12.23%). ) over the same period.

While the price trend is generally upward in the short term, the short term BTC resistance stands at $ 35,000 and $ 36,000. On the downside, support is around $ 33,700 and $ 32,700. Additionally, BTC / USD is experiencing price consolidation dating back to mid-June, with a technical symmetrical triangle emerging potentially signaling a directional breakout to come.

The decline in Bitcoin trading volumes matches this emerging technical setup, suggesting an increased likelihood of a strong directional breakout. After July 3, the average daily Bitcoin volume fell quite rapidly, going from medium to high levels of $ 30 billion in 24 hours to turnover in the medium to high range of $ 20 billion by the second. half of the week, which means that the last gains come right after the volume drops.

Disclosure: Reuben Jackson did not hold any positions in the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained in this document is for informational purposes only. Nothing in this article should be construed as a solicitation to buy or sell securities.

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