Bitcoin price retraces to the demand zone, which spans $30,573 to $31,979, in the hopes of triggering a major rise.
After the current crackdown and migration, Chinese miners have dumped their GPUs.
New York lawmakers is pushing for a bill that, if passed, would require public officials to reveal their cryptocurrency holdings.
Since June 29, the price of bitcoin has been slowly declining, and it has recently come dangerously close to crossing a key demand zone. The world’s most popular cryptocurrency is currently consolidating in the hopes of launching an exponential run-up.
The Bitcoin mining business has been in a pickle since China’s crackdown on cryptocurrency. Things have changed, from a forced miner exodus to a decline in BTC hash rate and miner earnings.
The most recent change is the single largest decrease in mining difficulty. On July 3, the difficulty reduced by around 28% at 689,471 block height, resulting in this event.
The tweak was welcomed by miners, since it increased daily miner earnings to $0.377 per TH/s, which was last seen in mid-May. This number is currently hovering at $0.322 per TH/s at the time of writing.
Profitability graph for bitcoin mining
While conditions are steadily improving, China’s tough stance has prompted many Chinese Bitcoin miners to sell their GPUs on Xianyu, a second-hand marketplace. The RTX 30 series GPUs are being sold for half the price, according to local media sites.
The customers were also expected to pick up their products directly at the mining operation, according to the offers.
While Chinese miners are being targeted, the so-called “war on crypto” has spread to other parts of the world. Binance, one of the world’s largest cryptocurrency exchanges, has halted bank deposits in Europe due to “events beyond [its] control.”
Binance was issued warnings by the UK’s Financial Undertake Authority (FCA) for marketing complicated cryptocurrency financial instruments to British consumers without first acquiring a license to conduct regulated activity. Barclays first ignored the FCA’s warnings, but later stopped its customers’ payments to the exchange in question.
Meanwhile, on July 2, New York State Senator Rachel May introduced legislation requiring state public officials to disclose their cryptocurrency holdings on their annual financial disclosure statement.
According to the bill’s summary, which will add a new paragraph to the public officers’ statute,
The law requires reporting of the type and market value of cryptocurrencies held by the reporting individual in excess of $1,000 at the end of the taxable year before the date of filing.
These developments indicate that cryptocurrency regulation is on the way in a big way. Despite the fact that they appear to have had a negative impact on Bitcoin prices recently, they could actually strengthen the argument for an upswing. Several technical and on-chain indicators indicate that the pioneer cryptocurrency is poised for a move that might reignite the bull market.
Since hitting the 50% Fibonacci retracement line at $35,618 on July 5, bitcoin price has seen two downswings. Despite a 10% dip since then, BTC has yet to reach the demand zone, which ranges from $30,573 to $31,979.
Such a move is required to build momentum ahead of a major upsurge that pushes BTC past the midpoint at $35,618 and attempts to reclaim the range high of $42,451.
Investors must verify that the slump will not occur and that the Bitcoin price has already begun to rise.
1 day chart of BTC/USDT
The immediate support level of $30,956 encompasses 355,000 addresses that previously purchased 268,000 BTC, according to IntoTheBlock’s Global In/Out of the Money (GIOM) model.
This cluster has a smaller number of investors. A surge in selling pressure could drive the flagship cryptocurrency to the next level, when 5.35 million addresses purchased nearly 2.89 million BTC. These traders amassed BTC ranging from $10,363 to $28,734.
Buyers can expect a retest of the range bottom at $28,785 in the worst-case scenario.
GIOM graphic for Bitcoin
Both the 365-day and 30-day Market Value to Realized Value (MVRV) models are in the opportunity zone, implying that an upswing is about to begin. This basic index tracks the profit and loss of investors who bought BTC in the previous year and month.
A drop below the zero-line indicates that short-term investors are panic-selling, allowing long-term investors to accumulate.
The last time both the 365-day and 30-day MVRV models were in the opportunity zone was during the COVID-induced crash in March 2020. The price of Bitcoin increased by 81 percent in three months, from $5,200 to $9,450.
As a result, a similar scenario could be the key to reigniting the bull market.
MVRV graphic for Bitcoin over a 365-day period
Furthermore, whales owning 100 to 10,000 BTC have begun to accumulate, indicating a bullish trend. Between May 30 and July 9, the number of these investors climbed from 15,930 to 16,000 people.
Over the last month, a total of 70 new whales have joined this group, showing that they are bullish on Bitcoin’s price performance in the near future.
Chart of Bitcoin Supply Distribution
While the technicals and fundamentals appear to be in favor of Bitcoin, a rise in selling pressure that shatters the demand zone, which spans $30,573 to $31,979, could lead to a retest of the $30,000 support level or the range low at $28,785 in some circumstances.
A break of $28,785 will invalidate the bearish scenario, even if this move does not. In this event, Bitcoin’s price might drop by 10%, hitting the $25,700 support level./n
