Bitcoin (BTC) is down another 8% today with its price slipping under $33,000 as the world’s largest cryptocurrency continues to lose strength. The latest price crash comes as long positions worth nearly 1000 BTC have been liquidated over the past hours. Citing data from on-chain data provider CryptoQuant, Chinese crypto-journalist Colin Wu reported:
“CryptoQuant data shows that in the past hour, the number of orders with long positions liquidated was 991.69 BTC. AICoin shows that the amount of liquidation in the past hour was 244 million US dollars, and the long liquidation accounted for 75%”.
It looks like the bearish momentum for Bitcoin is strong at this point and will continue for a while. Some analysts are closely watching the developments in the equity market. Analyst Willy Woo predicted that equity markets will decide the further price action in Bitcoin irrespective of the on-chain fundamentals.
Bitcoin Miners Holding Strong
Despite the massive crackdown by Chinese authorities in recent times, Bitcoin miners are not willing to part ways with their holdings anytime soon. CryptoQuant CEO Ki-Young Ju shares data for the “Miner Direct Selling Index” which shows that the flow of Bitcoins from miners to exchanges has been decreasing. The data shows that there’s been a significant drop in the direct selling index since March 2021.
Last Saturday, the Chinese authorities asked miners from the Sichuan region to shut down operations. As per industry estimates, nearly 90% of the Bitcoin mining operations have been shut down with the Sichuan crackdown.
Popular crypto analyst PlanB, the author of the stock-to-flow (S2F) model noted that Elon Musk’s energy FUD and the Chinese crackdown resulted in this BTC price crash. He expects Bitcoin to trade under pressure for the rest of June and July. However, PlanB notes that while considering the worst-case scenario, Bitcoin is still going $135K by the end of this year.
Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (@100trillionUSD) June 20, 2021