Bitcoin's price falls below $34,000 as the day of Grayscale's massive unlocking approaches.
Volatility spikes on Sunday as market participants believe the downward price trend is nearing completion.
Major Updates
- Bitcoin fell to a low of $33,750 on June 20 due to concerns about a lack of support.
- Unlocking Grayscale 16K BTC is on the way.
- Grayscale is the leading digital asset manager, providing institutional investors with access to Bitcoin.
What can we expect in July?
During a volatile weekend, BTC/USD fell below $34,000 on Sunday, according to TradingView data.
When prices exceed $30,000 and supplies are limited, there is little incentive to avoid price declines.
On the day, Binance order book data supports this, as sellers demolish a massive buy wall above $36,500, leaving a critical support level below $31,000.
Binance had buy and sell orders in BTC/USD on June 20. Twitter/Material Indicators
The majority of traders' discussions centered on a chart known as the "death cross," which occurred on Friday. When the 50-day moving average crosses above the 200-day moving average, it is considered a poor indicator of price stability.
Certain death crossings, according to Cointelegraph, result in additional bullish periods.
According to well-known trader Crypto Ed, a death cross is overrated.
"Just a heads up: You're a little late when you open your shorts. The majority of the downs happen before the cross."
Adam Back, CEO of Blockstream, chastised Twitter users for focusing on the negative aspects of death cross events in a separate post.
At the time of writing, Bitcoin was still down 5%, with 3-day losses reaching over 14%.
After a $800 flash loss, nearly $150 million in exchange positions were liquidated in less than an hour.
Short selling is an option for gray investors
If a "unlocking" event is anticipated at Grayscale, the price may fall.
As previously reported by Cointelegraph, massive pools of investor cash will become available after a six-month lockup period, potentially causing additional selling pressure on the spot market.
139,500 BTC (GBTC) have been unlocked since mid-April 2021 to the present.
"Another price drop is expected to begin in mid-July, when another 140,000 GBTC is released."
If the aforementioned unlockings have reduced the price from the mid-April highs, sell-side activity should be reduced after the summer.
Fundamentals point to an increasing retracement.
Investing in network fundamentals revealed new issues. The hash rate had dropped below 100 exahashes per second (EH/s) after peaking at 168 EH/s. Other estimates have also shown a decrease in hash rate. DIFFICULTY was on track for a third leg down of approximately 9.7 percent after two consecutive downward revisions. The most recent bear market began at the end of 2018 and was characterized by a third consecutive decline in Bitcoin's difficulty.
Conclusion
July has historically been one of the most bullish months for bitcoin. Aside from a 6.6 percent drop in the BTC price in July of 2019, Bitcoin experienced double-digit growth in 2017, 2018, and 2020.
