Investor sentiment hesitates as Bitcoin drops below $ 35,000, long-term gamblers continue to accumulate

Bitcoin is fighting again and the fall below $35,000 has left investors reluctant to buy before the current fall. But on-chain data indicates that long-term players continue to aggressively accumulate.

On June 18, Bitcoin and conventional financial markets were confronted with remarks about pressure from the US Federal Reserve (Fed) over the potential for an earlier-than-expected rate increase, which led to a sharp spike in the dollar versus other asset prices.

See more: After that the Fed assembly, what’s Bitcoin and the crypto market?

This resulted in relatively strong selling pressure over the weekend which pulled Bitcoin price below the crucial support level of $36,000, prompting traders to prediction $32,500 as another stop before revisiting Bitcoin, the previous non test range was at 30,000 USD.

These technical aspects, together with the negative information from China concerning the shutdown of cryptocurrency miners, caused the hash rate of bitcoin miners in China to continue to decline. The current crash of the Iron Finance protocol prompted billionaire Mark Cuban to seek assistance with stablecoin regulations, which made traders worried about the present drop in Bitcoin prices.

See more: What is the main reason TITAN “dumps” strongly to zero? What occurred to TITAN?

Correlated with all the greed and fear indicator, there’s still no positive signal and continues the trend of intense fear that started on Black Wednesday, May 19 and is now at index 23.

Bitcoin flow can be a motive for Bitcoin’s downward tendency. According to CryptoQuant’s Ki Young Yu, he believes that a whole lot of Bitcoin has been pouring into the trades recently, but the trading volume remains relatively small. BTC needs more trading volume to enhance the market’s cash flow.

One thing concerns me $ BTC is the exchange of internet currents.

A lot of bitcoins have been pouring into the trades recently, however, the trading volume remains relatively low. $ BTC requires more trading quantity to digest the rising stock market inflows.

Data@cryptoquant_com pic.twitter.com/bCFAqmWft6

– Ki Young Ju (@ki_young_ju) June 11, 2021

As investor fear develops and some traders that have shopped between the March and May highs are available at a loss, the total supply of Bitcoin by long-term holders proceeds to grow after hitting a low in mid-May.

See more: Is this a fantastic time to purchase bitcoin once the panic subsides?

Although the issue is severe in China, the chart above shows that the miners continue to hold BTC. The number of bitcoins regularly sent to exchanges by miners is diminishing. Chinese regulations can simply induce miners to market their rigs, but not Bitcoin.

Overall, Bitcoin’s short-term is still fraught with dangers, we want to look at Bitcoin’s price advancement in the coming days to better understand the trend. On the other hand, the long-term data indicates a positive future as whale wallets and long-term owners continue to boost their Bitcoin balances.

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