What is happening to bitcoin?

By 15/07/2021News

Gold  1827,745

EURUSD   1,1837

DJIA  34757,50

OIL.WTI  72,495

DAX   15762

The first cryptocurrency fell sharply on the night of Tuesday into Wednesday. In the afternoon, it bounced back just as sharply. The movement dynamics are particularly good on the M15 timeframe.



The overnight fall in bitcoin was linked to a new ban on mining in China. News broke that all cryptocurrency mining farms in Anhui province would be shut down due to problems related to power outages.
It is unclear why the market continues to react to such news, given that some 90-95% of mining companies in mainland China have already shut down. Naturally, buyers have happily set a bear trap and the price has moved back up, renewing the daily highs.
Tellingly, the market is paying less and less attention to this kind of news backdrop. In particular, Elon Musk’s recent tweet about the Shibu token, for the first time ever, did not trigger a move in that asset. Traders have lost a lot of money following the tweet of the world’s number one entrepreneur. And less and less eager to bet their real money on those tweets.
Meanwhile, bitcoin volatility has fallen to its lowest levels since the beginning of this year. The volatility has steadily declined, as has the number of “bitcoin” queries on Google. On the one hand, this indicates that overheating is leaving the exchanges. On the other hand, we should keep in mind the seasonality. Traditionally, July and August are holiday time. Not only in cryptocurrency trading, but also in forex and stock markets, the activity of traders and investors decreases.
But there is no need to relax. If you think back a year ago, it was those months that put the public to sleep, giving time to redistribute bitcoins into strong hands. And then came a massive pullback upwards, which devastated a huge number of bears who were shorting BTC in the hope that the price would continue to be in a channel.
Something hints that the situation could happen again this year.

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