Bitcoin Price Going Below $33K Despite Hints Of Accumulation

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With the release of the cryptocurrency crackdown by China comes the increase in Bitcoin hash rate- implying a recovery for the cryptocurrency. Since then, most of the traders have now shifted their focus towards how the crypto price would be affected by the unlocking of around $550 million worth of GBTC shares of Grayscale. 

According to data received from TradingView and Cointelegraph Markets pro, there has been quite a visible downtrend in the price of BTC on the 12th of July. This continued well into the afternoon as the price of Bitcoin dropped below the resistance of $33,000 after a bearish outlook took over the crypto market. It comes as no surprise that Grayscale did manage to attract further attention on Monday after quite a few media firms reported that they had filed three different Form 10 registration statements with the SEC. 

Bitcoin Hash Rate Shows Signs Of Recovery

The crackdown by China on Bitcoin mining has resulted in a decline of 55% in the network hashrate as most of the mines have been shut down throughout the country with most of the operations moving overseas. As Glassnode reports, almost 29% of the mining enterprises that lost hashpower are finally coming back online. This is directly a result of the Chinese miners being able to successfully relocate most of the hardware while the obsolete hardware from the previous years has been given a new life. 

After close to a month of total shutdown, the Miner Net Position Change metric now highlights that they are completely back in accumulation mode which indicates that the sell-side pressure coming through the offline miners has now been more often than not offset by the accumulation of their original miners. 

There has been further evidence of a major decrease in selling that is quite evident with the exchange flow data for Bitcoin. Such a flow has regularly seen larger tokens of cryptocurrency withdrawn from exchanges that did deposit over the last couple of weeks.