There is hope amidst the BTC plunge Giant Whale accumulates $2 billion in BTC in a month

Expectations were basically fulfilled, and the domestic banks’ strict inspection of the incoming and outgoing gold channels became the trigger for the plunge.

At the request of the central bank, some domestic banks and payment systems issued a document yesterday, not to use their channels for virtual currency transactions, with the news, the cryptocurrency circle plunged across the board, just two days into the week, BTC, ETH weekly fell more than 10%, DOGE fell nearly 30%, the rest of the mainstream coins are also a waterfall, a miserable.

From Sichuan’s sweeping closure of mining farms to the comprehensive and strict investigation of incoming and outgoing gold channels, the frequent high-pressure policies have made the users of the cryptocurrency circle as cold as nine feet of ice, from the hope of competing for the pricing power of virtual currencies to the recent hope of “de-Chineseization”, which shows the depth of resentment.

In the previous article, we mentioned: Be prepared for the waterfall.

In the previous article, we mentioned: the funds did not choose the direction decisively because of the Fed meeting, the market is not out of the oscillation range, need some events to promote. And these events, in terms of timing, will not be more precise like this meeting, and may appear in the form of a surprise, such as the US checking USDT, the US IRS starting to collect taxes on cryptocurrencies across the board, head exchanges being investigated, Musk tweeting, etc.

The expectations were basically fulfilled, and the domestic banks’ strict investigation of incoming and outgoing gold channels became the trigger for this plunge.

But is this plunge entirely due to domestic regulation?

The central bank interviewed some banks and payment institutions about virtual currency, has been a clichéd topic, from the five ministries issued in 2013, CCB in 2014, CITIC Bank in 2020, 94 in 2017, has passed so many years, year after year to come up with things, the impact is really limited. Illegal cross-border transfer of assets and money laundering, and not just this year. The largest scale of international money laundering is the U.S. dollar, not digital currency, the two differ by several orders of magnitude, just digital currency is difficult to track and regulate.

The liquidity contraction is expected + strong domestic regulation, and the formation of superb synergy between the West and China is the main trigger for this plunge. Personally, I think that liquidity contraction expectations, is the main reason, and domestic regulation, is just a booster.

Liquidity contraction is expected, and is still going expected, the specific implementation, or contraction to what extent, is far from conclusive. Monetary easing is like drug addiction, shrinking asset purchases are like drug treatment, interest rate hikes and table reductions are like scraping the bones, driven by the huge interest, the Fed’s willingness to contract liquidity is weak, and the degree of contraction should be discounted first.

For example, the Fed’s view, or that the current inflation is only temporary, after the supply picks up, inflation data may fall. Therefore the future of monetary policy, the variables are still there. Although monetary policy is expected to contract, the liquidity of the market is very abundant, after a year of continuous release of water, the current liquidity of the market and the outbreak of the epidemic in early 2020, it can be said that the difference between the clouds.

The market is not short of money.

MicroStrategy spent $489 million to buy about 13,005 more bitcoins amid the plunge, and a new study by Nickel Digital Asset Management shows that 19 publicly traded companies hold more than $6.5 billion worth of BTC.

Data from Santiment in early June showed that the bitcoin whales have been buying bitcoin and have amassed nearly $2 billion so far. Whale addresses with more than 1,000 BTC now hold more than 7.88 million BTC, the largest number held since March 14. In contrast, addresses with less than 10 BTC hold only 2.65 million BTC, the smallest number in the last six months, in contrast to the whale’s buying.

The giant whales are continuing to buy, while the retail investors are selling.

This is an important foundation for a return to a bull market in the cryptocurrency world in the future.

Technical Analysis

BTC

BTC plunged to near 31,000 yesterday, and although it rebounded today, the resistance at the key position of 35,000 will be strong, and we have yet to see any signs of being able to break 35,000 and trend stabilization and reversal in the short term.

From 40,000 down to near 30,000, 7 days down 25%, there may be a small rebound during the day, but the rebound is not a reversal. There is a high probability that BTC will break through $30,000 in the future. Theoretically, there is a possibility of breaking through $20,000. So it’s best to keep only 30% of your position in the spot, and the contract is still short at high levels, waiting for the fall in place.

Resistance level: 35000, 34200, support level: 30000, 27000 .

ETH

ETH continues the downward trend, the disk is still very weak, the average downward pressure, a large negative hit the strong support level of 1950, the strength of the rebound is also very weak, the future may have further downward space, homeopathic operation can be, do not need to entangle where is the bottom.

Resistance level: 2150, 2050, support level: 1800, 1600.

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