What is happening to bitcoin?

morning-news

Gold  1827,745
(+0,05%)

EURUSD   1,1837
(+0,01%)

DJIA  34757,50
(+4,56%)

OIL.WTI  72,495
(+18,63%)

DAX   15762
(+3,83%)

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.


BTCUSD

BTCUSD

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.

03.30 Australian unemployment rate for June
04.00 China retail sales for June
04.00 China 2nd Quarter GDP
08.00 UK May Unemployment Rate


Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.