China’s crackdown on bitcoin mining has resulted in a 55% drop in hash rate due to the nationwide shutdown of BTC mines and offshore operations.

According to a recent report from Glassnode, about 29% of the lost hash power is now operational again as Chinese miners successfully relocated the hardware while “previously obsolete hardware was removed and found suitable for use”.

Source: Glassnode

After nearly a month of selling pressure from miners, the miners’ net change in position numbers now show they are returning to accumulation mode. This represents “the sales-side pressure from offline miners, which is more than offset by the accumulation of active miners”.

Further evidence of a decline in sales can be found in the data on exchange outflows, which shows that BTC has had more outflows from exchanges than inflows over the past two weeks.

Source: CryptoQuant

Due to increased outflows, Bitcoin reserves on all exchanges decreased by more than 16,100 BTC between June 28 and July 11.

Source: CryptoQuant

From a macro point of view, many interpret this as a bullish move for Bitcoin, as holders seem to be shifting BTC to long-term storage as the market waits for the next significant surge.

Get ready for the “violent step”

Those looking for more excitement won’t be disappointed this week, even if the area-bound behavior persists.

The inspiration this time around came from the famous trader John Wick, who noticed a historically rare Bitcoin signal that required rapid price movement.

“We have now entered an area of ​​overlaid volatility highlighted in yellow,” he commented alongside a graph depicting an event known as a “squeeze”.

“Violence is coming and is imminent. This tells you it is time to pay attention. There could be an outbreak or a fakeout squeeze in the coming weeks. “

Source: John Wick / Twitter

Squeezing is not an everyday thing. The last two events included a wild ride from $ 9,100 to an all-time high of $ 64,500, along with a subsequent frenzied correction to $ 30,000, Wick said.

While the exact time and nature of the next squeeze or even its direction are unknown, Wick is leaning upwards.

Both the recent BTC accumulation and the strength of the USD 30,000 support add to his conviction.

Annie

According to Cointelegraph

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