Chinese Crackdown on BTC Miners Puts Pressure on Crypto Market — Analysis, 21 June

Chinese Crackdown on BTC Miners Puts Pressure on Crypto Market — Analysis, 21 June

Last week, the news about China’s cryptocurrency mining crackdown dominated the market. The authorities of China’s southwest province Sichuan issued an order demanding to close the mining facilities in the region. Sichuan is considered to be the second-biggest Bitcoin mining region in China. Because many of those miners have started to shut down their mining activates and close the facilities, the hash rate of Bitcoin has dropped by over 30%, reaching the levels from the second half of 2020:


China’s crackdown on Bitcoin miners has put a lot of pressure on the crypto market recently. Last week, the prices of most of the top cryptocurrencies went down.

Robert Kiyosaki, the author of ‘Rich Dad Poor Dad’, tweeted that the biggest bubble in world history is going to burst, and he expects Bitcoin to sink to $24,000.

Source: Twitter

Nevertheless, the real cryptocurrency enthusiasts do not succumb to the China FUD and are even taking advantage of the ongoing price correction in the market by buying more crypto. According to Glassnode, on June 16, the centralized exchanges recorded the first Bitcoin net outflow in the last almost two months — a signal that the number of cryptocurrency buyers at the current levels is increasing.

Source: Twitter

The negative news from last week has dominated the market, and most of the major cryptocurrencies have recorded price slumps. The Monday market starts with a continuation of this price decline. According to, one Bitcoin costs €27,767.75 (-7.35%), one Ethereum — €1,693.22 (-8.59%), one DOGE — €0.2156 (-8.55%), and one UNI — €15.40 (-9.15%):

Source: (Daily crypto market performance)

Now let us look at the price charts of the top cryptocurrencies against the euro in the most significant time frames.


In the daily chart (1D), BTC/EUR is moving sideways within a broad range that corresponds to the consolidation range from the beginning of the year:

As can be seen from the chart, right now, the 30-day Moving Average (MA 30) is putting pressure on the potential price increase of Bitcoin.

We think that if the bearish pressure from the MA 30 continues, the price of Bitcoin will remain range-bound between the 360-day Moving Average (MA 360) (at the level of approximately €24.463), and the MA 30 (at the level of approximately €30.404).


In the daily chart (1D), ETH/EUR is still within the Ascending channel (uptrend):

Nevertheless, the buyers should be very cautious. First of all, as can be seen from the chart, at the moment, ETH/EUR is testing the lower line of the channel (trend line). Secondly, the 30-day Moving Average (MA 30) dropped below the 90-day Moving Average (MA 90). That means that a common trend reversal signal known as a Moving Average Crossover has taken place.

It is worth keeping an eye on the 1-hour chart (1H), where ETH/EUR is moving down within a Descending channel:

Only if ETH/EUR breaks out of the Descending channel and exits into an upward direction, some traders may open long positions expecting Ethereum to resume the uptrend in the daily chart.


In the daily chart (1D), the price of Dogecoin has declined further and dropped even below the 90-day Moving Average (90-day MA):

As can be seen from the chart, the 30-day MA (MA 30) is above the 90-day MA (MA 90), and both MAs are above the current price of Dogecoin. According to the Technical Analysis theory, this is a bearish formation indicating that the bears will continue to put pressure on the price. That’s why for now, we prefer to stay away from trading Dogecoin and wait for a more favorable time.


In the weekly chart (1W), UNI/EUR has formed another bearish candlestick with a local high below the previous one and a local low below the previous one — a common bearish signal:

Also, as we already outlined in our previous analysis, a Moving Average Crossover had taken place in the daily chart (1D):

As can be seen from the chart, the 30-day Moving Average (MA 30) is below the 90-day Moving Average (MA 90). As long as this technical formation remains in place, we will prefer to stay away from opening long positions.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.

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Chinese Crackdown on BTC Miners Puts Pressure on Crypto Market — Analysis, 21 June was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

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