Although the bulls showed strength in the morning, Bitcoin (BTC) price is still below the $35,000 resistance and cannot reverse the 20-day moving average to support or lock in the daily close.

Data from Cointelegraph Markets Pro and TradingView Since the high of $35,400 on June 28, Bitcoin has been trading in a range of $33,850 to $35,000 as the impact of China’s BTC mining crash continues to impact the market.

4 hour BTC/USDT chart. Source: TradingView
The Chinese government has not only turned the Bitcoin mining ecosystem upside down, but has also rotated local cryptocurrency exchanges, leading to the shutdown of BTCChina. China has also effectively banned the trading of crypto-derivatives for users of the Huobi exchange.

Bitfinex BTC Floods into Focus as Sales Continue
According to Glassnode, the drop in prices last week “raised panic” for both long- and short-term holders, as evidenced by the volatility of LTH-SOPR and the deep capitulation of STH-SOPR.

A short and long term SOPR holder for Bitcoin. Source: Glassnode
Glassnode said:

“STH incurred slightly less losses than during the capitulation in March 2020. LTH was willing to use coins with average values ​​ranging from $9.2k to $16.3k this week, which indicates a high degree of uncertainty.”
More information on current market conditions provided by CryptoQuant has identified Bitcoin inflows and outflows on Bitfinex as a potential indicator of market developments.

According to CryptoQuant’s analysis, the market sees “a relatively high BTC spot-flow derivative,” a change that usually “signals a turning point” in the market.

CryptoQuant confirmed that the recent increase in the average total bitcoin inflow (MA7) “indicates that the large deposits that caused the drop are coming to an end” – an observation that was further confirmed by the influx of bitcoins from Bitfinex “which was seen as the main reason for the downturn. The last downturn.

Crypto analyst William Clemente III highlighted the increasingly dangerous situation the bears are now facing, posting the following tweet mentioning 11 consecutive days of negative funding.

Bitcoin Rally brings relief to Altcoins
The price of most altcoins changed dramatically as Bitcoin showed signs of life above $34,000, including a 15.7% increase in the price of Ether (ETH), which briefly pushed the top altcoin back above $2,100.

Daily indicators of the cryptocurrency market. Source: Coin360
The best performer of the day was Populous (PPT), which surged 100% to an intraday high of $2.67, while IoTeX (IOTX), Kusama (KSM) and Compound (COMP) all posted 33%.

The total cryptocurrency market capitalization is now at $1.402 trillion, and the bitcoin dominance rate is 46.1%.

Source: CoinTelegraph