Crypto market regulation tightens, BTC short force strong

Funds fled, investors are cautious to bottom.

Following a series of regulatory initiatives issued by countries such as China, the U.S. and South Korea, Bank of Japan Governor Haruhiko Kuroda also said today that Bitcoin is used for speculative trading and is highly volatile. Separately, Michael Mosier, acting director of FinCEN in the U.S., said that FinCEN’s proposed crypto wallet rules are still under close discussion. There is a growing trend toward a globalization of regulation regarding the crypto market.

Cathie Wood, founder of ARK Investment Management, said bitcoin fell 50% because institutions felt pressure from environmental protection (and so sold off). Overall, bitcoin’s current decline comes from two main sources of pressure, from financial regulation on the one hand and institutional concerns about its energy waste on the other. The market is still under regulatory pressure in the short term, with signs of capital flight and relatively strong short-side forces.

BTC has fallen sharply today from the technical chart, and the short term has fallen below MA240, the market panic is serious, recent regulation is tightening, investors should be cautious to take the bottom. important support level below BTC is $32,000, above resistance level $40,000.

Abstract

  1. Bitcoin’s current declining trend mainly comes from two pressures, one from financial regulation and the other from institutional concerns about its energy waste.

BTC has fallen sharply today and has broken below MA240 in the short term, according to the Firecoin Global Station.

  1. from the miners production and selling accumulation data can be seen, miners production volume basically stable, selling volume appeared to rise, miners 24 hours net accumulation of 35 BTC, which indicates that miners selling sentiment increased, which will form a certain resistance to BTC upward.
  2. the number of BTC coin-holding addresses stabilized and rebounded, and the amount of BTC locked positions in DeFi increased slightly, which increased the strength of the long side.
  3. Market sentiment has fallen, off-site attention has decreased, and overall market wait-and-see sentiment is strong.
  4. The contract market is slightly dominated by long positions, the number of BTC long and short positions ratio fell sharply in the short term, and BTC is expected to go lower in the short term.
  5. The mainstream crypto index in today’s crypto market fell generally, and the cottage coin index fell the most, and there are signs of certain capital flight.

I. Macro Market and Cryptocurrency Highlights
Bitcoin’s current decline mainly comes from two pressures, one from financial regulation and the other from institutional concerns about its energy waste. Following a series of regulatory initiatives issued by countries such as China, the US and South Korea, Bank of Japan Governor Haruhiko Kuroda also said today that bitcoin is used for speculative trading and is highly volatile. Michael Mosier, acting director of FinCEN in the U.S., said FinCEN’s proposed crypto wallet rules are still under close discussion. Cathie Wood, founder of ARK Investment Management, said bitcoin is down 50% because institutions are feeling pressure from environmental protection (and so are making sell-off).

Institutional investors are also really split on bitcoin. Tiger Securities to Lay Out Overseas Virtual Currency License, CEO Says Will Offer Digital Currency-Related Transactions in Due Course. Convenience store giant Sheetz will start accepting dogcoin, bitcoin, ethereum and other payment methods. Citigroup CEO Fraser said Citi is “cautiously” moving forward with cryptocurrencies (business). Opponents are advising people to stay away from cryptocurrencies. The Goldman Sachs CEO said I’m very cautious about bitcoin and buyers should beware. JPMorgan Chase CEO Dimon said he recommends people stay away from cryptocurrencies.

II. Technical Analysis
According to the quotes of Firecoin Global Station, BTC fell sharply today, the short term has fallen below MA240, the market panic is serious, the recent regulation is tightening, the market may have a short term, investors should be cautious to take the bottom. the important support level below BTC is $32,000, the resistance level above is $40,000.

Three, miners accumulation indicators
According to bytetree data, from the miner production and selling accumulation data can be seen, miner production is basically stable, the amount of selling has risen, miners 24 hours net accumulation of 35 BTC, which indicates that miners selling sentiment has increased, which will form a certain resistance to BTC upward.

Crypto market regulation tightens, BTC short force strong

IV. On-chain indicators
According to Oklink data, by observing the number of coin-holding addresses, we can see that the number of BTC coin-holding addresses has stabilized and rebounded, and the market bottom support has obviously increased. As of 16:00 today, the locked position of BTC anchored assets in DeFi is 241612 (241530), and the net increase of BTC locked position in DeFi is 82 BTC. From a comprehensive point of view, the number of BTC held coin addresses stabilized and rebounded, and the locked position of BTC in DeFi slightly increased, and the strength of the long side has increased.

V. Panic Index and Buy/Sell Strength Indicator
According to alternative.me data, today’s panic and greed index is 21 (27 yesterday), and the market panic sentiment index has decreased. According to the Baidu search index, Bitcoin search volume declined and market attention fell back. According to Toronto Exchange data, BTCC volume copies 502119 (561242) throughout the day, a big drop compared to yesterday; gray GBTC premium was -11.9% (-12.0% yesterday). According to coincoin data, as of 16:00 today, BTC current funding rate -0.001% (yesterday -0.028%), the funding shorting sentiment has weakened; the current bitcoin RSI 14 (buying and selling relative strength index) is 36.0 (yesterday 36.9), the field buying power has not changed much. On balance, market sentiment has fallen, off-site attention has declined, and overall the market is in a strong wait-and-see mood.

VI. Contract Indicators
According to coincoin data, as of 17:00, the ratio of long and short positions on the whole BTC network is: 50.18% long and 49.82% short, with the long positions slightly dominant. According to OKEx contract data, on the hourly chart, the BTC long-short position count ratio fell sharply in the short term, and the market was in a strong bearish mood in the short term. On balance, the contract market is slightly dominated by long positions, the BTC long-short position count ratio fell sharply in the short term, and BTC is expected to go lower in the short term.

Seven, mainstream assets and popular coins
According to Chainext data, the mainstream crypto index in the crypto market fell generally today, and the cottage coin index fell the most, with certain signs of capital flight. Currently, among the top 100 coins in the 24-hour period, the top five coins in terms of gain are HNT (22.6%), TFUEL (17.6%), THETA (4.2%), DOT (3.1%), and DCR (2.4%).

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-market-regulation-tightens-btc-short-force-strong/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-28 06:29
Next 2021-05-28 06:32

Related articles