China’s crackdown on BTC miners puts pressure on the crypto market — analysis, June 21 | Via Bitvalex | Capital | June 2021
Last week, news about China’s crackdown on cryptocurrency mining dominated the market. Authorities in Sichuan, China’s southwestern province, issued an order calling for the closure of mining facilities in the area. Sichuan is considered to be the second largest Bitcoin mining area in China. As many of these miners have begun to shut down their mining activities and shut down facilities, Bitcoin’s hash rate has dropped by more than 30%, reaching the level of the second half of 2020:
China’s crackdown on Bitcoin miners has recently put a lot of pressure on the crypto market. Last week, the prices of most top cryptocurrencies fell.
“Rich Dad Poor Dad” author Robert Kiyosaki tweeted that the biggest bubble in world history is about to burst and he expects Bitcoin to fall to $24,000.
Nevertheless, true cryptocurrency enthusiasts did not succumb to China’s FUD, and even took advantage of the market’s continuous price adjustments by buying more cryptocurrencies. According to Glassnode, on June 16, a centralized exchange recorded the first net outflow of Bitcoin in nearly two months-indicating that the current level of cryptocurrency buyers is increasing.
Last week’s negative news dominated the market, and most major cryptocurrencies experienced price drops. The market started on Monday with a continuation of this price drop. According to Coin360.com, the price of a Bitcoin is 27,767.75 Euros (-7.35%), an Ethereum-1,693.22 Euros (-8.59%), a DOGE-0.2156 Euros (-8.55%), and a UNI ——15.40 Euro (-9.15%):
Now let’s look at the price chart of the top cryptocurrencies against the euro in the most important time frame.
Bitcoin / Euro
In the daily chart (1D), BTC/EUR corresponds to Consolidation scope From the beginning of the year:
As can be seen from the chart, currently, the 30-day moving average (Horse 30) Is putting pressure on the potential price increase of Bitcoin.
We believe that if the bearish pressure from MA 30 continues, the price of Bitcoin will be at the 360-day moving average (Horse 360) (Approximately EUR 24.463), and Horse 30 (Approximately 30.404 euros).
On the daily chart (1D), ETH/EUR is still Ascending channel (uptrend):
Nevertheless, buyers should be very cautious. First of all, it can be seen from the chart that currently, ETH/EUR is testing the downline of the channel (Trendline). Second, the 30-day moving average (Horse 30) Below the 90-day moving average (Horse 90).This means that a common trend reversal signal is called Moving average crossover It has occurred.
It is worth paying attention to the 1-hour chart (1H), where ETH/EUR fell within 1 hour Downstream channel:
Only when ETH/EUR breaks Downstream channel And exit the upward direction, some traders may open long positions, expecting Ethereum to resume the upward trend of the daily chart.
On the daily chart (1D), the price of Dogecoin fell further and even broke below the 90-day moving average (90-day moving average):
As can be seen from the chart, the 30-day moving average (Horse 30) Above the 90-day moving average (Horse 90), and both moving averages are higher than the current price of Dogecoin. According to technical analysis theory, this is a bearish pattern, indicating that the bears will continue to put pressure on the price. This is why now, we would rather stay away from trading Dogecoin and wait for a more favorable opportunity.
Unity / euro
In the weekly chart (1W), UNI/EUR formed another bearish candlestick, with local highs lower than the previous one, and local lows lower than the previous one-this is a common bearish signal:
In addition, as we have outlined in the previous analysis, a Moving average crossover What happened on the daily chart (1D):
As can be seen from the chart, the 30-day moving average (Horse 30) Below the 90-day moving average (Horse 90). As long as this technical pattern still exists, we would rather stay away from long positions.
This analysis only provides information and does not constitute investment, financial, trading or any other type of advice, and you should not regard any content of Bitvalex as such advice. Bitvalex does not recommend that you buy, sell or hold any cryptocurrency. Before making any investment decision, you are solely responsible for conducting your own due diligence and consulting consultants.