Crypto

Bitcoin (BTC) Price Analysis: June 22, 2021

Bitcoin showed hope for a great recovery after hitting $40,000 last week. The uptrend came after Elon Musk said Tesla would accept BTC payments again if miners embrace renewable energy. However, the excitement of this announcement seems to be over and the largest cryptocurrency by market cap has now returned to the critical levels set during the May market crash.

BTC is trading at $32,843 on major exchanges at the time of writing, after a 0.3% drop.

Bitcoin Price Analysis

Over the weekend, another province in China has dealt Bitcoin another blow after shutting down Bitcoin mining. Sichuan province, one of the largest mining centers in China, has stopped Bitcoin mining operations, which affects the hash rate. After this announcement, the Bitcoin mining hashrate dropped to an 8-month low.

Source: TradingView

Bitcoin has dropped below the $33,000 support level, but the token is showing major resistance signs to stay above $32,000. Most cryptocurrencies are in the red zone, but few show the resilience that BTC does. The token resisted the $31,000 level and showed some bullish signs before the bears rallied again.

The key support level that BTC is currently testing is $31,500. If it breaks below this level, we could face another big sell-off that could bring the token down to the lows of $30,000. On the upside, buyers entering the current position could push the token towards the $35,000 resistance levels.

While BTC is currently the safest investment in the crypto market, on-chain metrics show active addresses have dropped to previously reported lows in June 2020. Between March and early May, active addresses on-chain for Bitcoin were 1.16 million, but that number dropped 24% to 884,000 addresses.

Also, institutional interest in the token seems to be waning. Last week, institutional investors slashed their Bitcoins by $890 million, adding to the six consecutive weeks that Bitcoin has recorded an increasing number of outflows.

Jim Cramer, host of CNBC’s show ‘Mad Money’ and a big crypto enthusiast, admitted that he has sold his BTC holdings due to the continued price drop. According to Cramer, his decision was influenced by increased regulatory pressure in the US and Beijing.

Bitcoin’s price correction is imminent and more and more people are looking for suitable levels where they can drop their holdings. However, others are also looking for a viable entry position in hopes of a price increase. This explains why BTC remains resistant to a drop below $30,000.

How much is Bitcoin (BTC) now?

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