- Bitcoin’s recent surge has boosted confidence in the East.
- Selling pressure continues despite Bitcoin falling into overbought territory.
A few weeks ago, we read about China’s decision to soften its stance on Bitcoin. [BTC] And the entire crypto market. The impact of this decision was clearly visible in BTC’s latest performance.
Is Your Portfolio Green? See Bitcoin Profit Calculator
According to recent statistics, China is contributing rapidly Up to the level of liquidity flowing into BTC. Several factors contribute to this observation. For example, the latest PMI data showed China’s manufacturing sector contracted in April. As a result, investors have shifted their attention elsewhere and benefited BTC.
The data also showed that the central bank of China is using open market operations to inject more money into the financial system. This would have encouraged more Chinese investors to acquire more BTC.
Moreover, China’s short-term lending rates fell to their lowest level in 10 months, prompting more borrowing. Perhaps some borrowed cheap liquidity flowed into BTC.
Will the bears continue to feed China’s liquidity thirst?
Any situation where China suddenly raises lending rates would be a disadvantage for BTC. Maybe some people will force you to sell. Such an outcome could have a bearish impact on BTC. Additionally, investors should now keep in mind the fact that China is one of the markets that has contributed significantly to his BTC demand and rise in recent times.
BTC’s on-chain characteristics tell us a few things about the current state of BTC and general demand. At the time of this writing, BTC’s average coin age indicator was increasing regardless of the YTD period.
Additionally, since June 23, BTC has seen some decrease in inactivity over the past few days. A significant decrease compared to the end of May. This reflects the selling pressure seen in late May when traders took profits. Interestingly, BTC’s press time price of $30,580 marked its previous year-to-date peak in April.
Will Chinese liquidity help propel prices to year-to-date highs? This Asian liquidity has certainly contributed to the recent rally and could underpin recent highs. However, traders should consider the fact that BTC recently moved into overbought territory last week. Therefore, expectations for selling pressure are very high.
Additionally, the distribution of BTC supply reveals an interesting picture of the current state of the market. Whales did not contribute as much selling pressure as expected, especially after over-buying.
How much is 1,10,100 BTC worth today?
The above findings indicate that there is still some confidence in BTC’s potential upside potential. Especially now the demand from the East is increasing.