Kripto Hírlevél: Még mindig nyomás alatt a Bitcoin (Angol hír)

• Bitcoin miners pull out of China under Beijing crackdown
• Open interest remains low
• Short term holders continue to sell crypto

The past week was another negative one for the cryptocurrency market. Major projects tried to erase recent losses in the first part of the week and Bitcoin managed to break above $40,000, although the bullish move turned out to be short-lived. It’s a somewhat gloomy picture for Bitcoin holders on Monday as the weekend also failed to produce any clear signs of a bullish price rebound. Bitcoin's dominance dropped to 42.5%. The capitalization of all digital assets in circulation fell to 1.6 trillion, while an average daily trading volume is registered at $104 billion.

Total market capitalization fell sharply in May. Source: CoinMarketCap

After last week declines Bitcoin starts a new week on a bullish note, however investors are still trying to assess what will happen next.  Depending on experience, the present conditions are seen by some as a golden opportunity for accumulation or as a real nightmare by others. When looking at the recent data from Glassnode, one can note that long term holders started to accumulate Bitcoin at current levels, while buyers who recently joined the market continue to get rid of their digital currencies. After the short-lived sale-off that accompanied the first drop to $ 30,000, miners also started buying the most popular cryptocurrency.

Miners and long term holders are accumulating, while short term holders are selling. Source: Glassnode

Also when we look at major players, like Grayscale Bitcoin Trust (GBTC), one can see that the premium is rising, suggesting that institutional investors are also accumulating at lower levels.

GBTC discount has started to close which suggests that institutional interest has risen as Bitcoin spot prices have fallen. Source: Glassnode

On the other hand, open interest remains low as many leveraged investors sustained significant losses during the recent sell-off and are unlikely to return to the market at least for now. As Cointelegraph reports, the capitulation of leveraged positions during the recent downturns has successfully reset the composition of the market as investors avoid risk. However this could in turn lead to more organic price increases driven by genuine demand from people who view cryptocurrencies as a long-term investment rather than a short-term speculative asset.

Open interest  and funding both remain at low levels. Source: BYBT.com

Bitcoin mining difficulty, which measures how much computer power is needed to produce a new coin, decreased 16% over the weekend which is the greatest blow this year. The network adjusts the difficulty level every two weeks to reflect the level of competition between miners. The recent decline indicates less competition. This is due to the fact that mining companies in China have been pulling operations out of the country as the government has intensified its crackdown on cryptocurrencies.

Bitcoin price bounced off the lower limit of the triangle formation during today’s session which coincides with major support at $34.500 and is currently testing 50 SMA (green line). However as long as the price sits below major resistance at $42,000 further downward move is the base case scenario. Should break below the aforementioned support occur, then declines could deepen towards next support at $29,000. Source: xStation5

Ethereum – buyers managed to halt declines at the lower limit of the triangle pattern and price broke above 50 SMA ( green line). If the current sentiment prevails upward move may be extended to the upper limit of the formation, which coincides with the 38.2 Fibonacci retracement of the recent downward wave. Source: xStation5