Bitcoin price drops below $ 34,000 as Grayscale’s massive BTC unlock dates approaches

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

Data from Cointelegraph Markets Pro and TradingView show BTC / USD briefly fell below $ 34,000 on Sunday after a behavior change at the start of the weekend.

A retreat from resistance near $ 40,000 continues, with low volume indicating little interest in defending price action above $ 30,000.

Binance’s order book data confirmed it that day, with sellers completing the big $ 36,500 buy to keep the next major support at just $ 31,000.

Discussions among traders centered on the so-called “Death Cross” on the daily and hourly BTC / USD charts that took place on Friday. This refers to the 50-day moving average being exceeded above the 200-day moving average and has traditionally been seen as a bad omen for price stability.

Historically, not all death trades have resulted in losses – as Cointelegraph reported, some upward phases follow.

“An Overrated Death Cross,” famous trader Crypto Ed Summary Start of the week.

“The only thing it tells you is that you are late to open your shorts. Most of the downs happened before the service. “

In one separate commentAdam Back, CEO of Blockstream, also urged Twitter users to grapple with the negativity of the euthanasia events.

However, at the time of writing, Bitcoin is still trading down 5% that day while the 3-day total loss is above 14%.

Liquidity on the exchanges is growing, with nearly $ 150 million in positions disappearing in just one hour after a rapid decline of around $ 800.

Grayscale investors have the opportunity to sell

Another theory of price direction implies an impending “unlock” phase in the gray levels of the institutional giant.

As Cointelegraph noted, a large amount of investor money will be released in the coming weeks after the six month lock-up period, with the potential for increasing selling pressure as investors become accredited to selling their GBTC shares) by selling BTC on the spot market.

Conversely, there will then be a significant lack of seller activity.

The fundamentals show an increasing retracement

Meanwhile, a look at the fundamentals of the network has given further cause for concern. The hash rate, which changed due to a change in the miner distribution, has fallen below 100 exahashes per second (EH / s) and previously peaked at 168 EH / s.

Analysts warn: Bitcoin could lose $ 30,000 if stocks soar

Other estimates, though imprecise, also show a downward trend in hash rates.

The difficulties arising from two consecutive downward revisions are on track for the third stage, down about 9.7% from the next stage over a nine-day period.

The last time Bitcoin saw three consecutive downward difficulty corrections was during the speculative phase of the previous bear market in late 2018.