On Monday, June 21, the Bitcoin rate fell to a local minimum of $31.7 thousand. At the time of writing, the Bitcoin price is near $32400. Over the past 10 days, the cryptocurrency has fallen in price by almost $10 thousand. This decline has also affected a number of other cryptocurrencies, such as Ethereum and XRP. At the same time, the value of shares of cryptocurrency exchanges and some companies associated with the digital asset market fell. China’s tough measures also led to a significant decrease in the hashrate of Bitcoin mining.
The latest wave of decline began after negative news from China. Over the past two weeks, four provinces have imposed mining bans. And today local banks have begun blocking digital asset transactions.
The order to stop the activity came from several local authorities. They demanded from the energy companies of the region to stop supplying electricity to all known crypto farms.
Prior to the ban, local miners believed they could avoid energy problems, as the region has a well-developed hydropower industry. However, Chinese regulators changed their approach and began to tightly control the country’s Bitcoin mining boom.
It is reported that cryptominers are already disassembling the equipment in order to transport it to other regions. Others try to find buyers of equipment in other countries.
Where will Bitcoin’s price move in the near future?
So far, no one can reliably predict where the price of the cryptocurrency is moving. Some believe that we are seeing a decline in high prices for Bitcoin, others are sure that it will still take off – maybe already in the fall.
So, according to some experts, the Bitcoin price will continue to decline, since there is no strong fundamental news on the market. They call the next level of support the mark of $ 28 thousand, then $ 23 thousand. Thus, experts believe that now is not the best time to buy cryptocurrency.
Globally, financial markets will be under pressure due to the recent Fed meeting, which showed a tendency to tighten monetary policy in the long term.
Experts add that now the cryptocurrency market may be in the accumulation stage according to the Wyckoff method. That is, while many sell in panic, large players accumulate volume.
The decline in the price of Bitcoin doesn’t cause an increase in open interest, which indicates that market participants have no desire to increase sales, while each strait of prices is bought out by investors. This situation indicates a possible start of price recovery in the foreseeable future. “In the near future we may see an attempt to break through the $30 thousand level, which may become the final price reduction. After that, I look forward to another consolidation in the area of $28- $30 thousand and so far I don’t see further prospects for a fall. Bitcoin is in the final phase of price correction, the overall trend remains bullish, and it only takes time for Bitcoin to start growing”, experts predict. They concluded that capitalization growth could begin at the end of the summer.