Bitcoin
Bitcoin (BTC) News Today: Could a Chinese Crypto Re-entry Neutralize Supply Surge?
Can the Chinese government rebalance the supply-demand imbalance?
Potential Market Shifts: Is Beijing Eyeing Bitcoin as an Alternative to Gold?
In June, FX Empire senior editorial staff member and author James Hyerczyk discussed the possibility of China returning to the cryptocurrency market.
The People’s Bank of China (PBoC) has reportedly closed gold purchases in May, fueling speculation about a shift in BTC and the cryptocurrency market.
James also highlighted BTC’s growing appeal as a hedge against a weakening US dollar.
A re-entry by Beijing into the cryptocurrency market could combat the supply issues impacting cryptocurrency price trends.
Supply and demand dynamics: supply pressures and investor sentiment
Would the US stop selling BTC if China was on the other side of the transaction?
In short, concerns about oversupply continue to impact buyer demand for BTC. Sizeable government holdings of BTC leave BTC and the broader cryptocurrency market at risk of another sell-off. However, China could rebalance the scales if it re-enters the cryptocurrency market.
Given the supply-side risks, investors must remain vigilant. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.
Technical analysis
Bitcoin Analysis
BTC remained well below the 50 and 200 days EMAsconfirming the bearish price signals.
A move by BTC above the 200-day EMA could give the bulls a run at the $60,365 resistance level. BTC could target the 50-day EMA in case of a breakout of the $60,365 resistance level.
US BTC spot ETF market flow trends and supply-demand imbalances need to be considered.
On the other hand, a break below the $52,884 support level could signal a drop towards the $50,000 level.
With a 14-Daily RSI reading of 27.72, BTC is in oversold territory. Buying pressure could intensify at the July 5 low of $53,591.