© Reuters
Investing.com – Like most “at-risk” assets, the new week is starting in the red, with a recent low near $16,050, as the cryptocurrency spent most of yesterday hovering around the $10,000 mark. $16,500.
At the time of writing, the thus shows a fall of almost 2% since yesterday, to $16,200, and remains stable over a week.
As is the case with exchanges, this weakness in Bitcoin is linked to the risk aversion sentiment that hovers over global markets on Monday, as rare protests in China have investors around the world worried.
Unrest in China Penalizes Bitcoin
Chinese civilians clashed with police in several cities, including Beijing and Shanghai, over the weekend as public dissatisfaction with the zero COVID policy reached fever pitch after the blaze. murderer in western China last week.
The clashes also come after riots broke out in Zhengzhou following the government’s reimposition of a lockdown in the city.
One of the risks is that the unrest in China will lead to further constraints in the global supply chain, leading to a more difficult fight against inflation and therefore the risk that central banks may even hike up. rate more than currently expected, which would be penalizing for cryptocurrencies as for all speculative assets.
The proportion of Bitcoin present on exchange platforms at its lowest for 4 years
As for more bitcoin-specific news, and more positive for cryptocurrency, note that data from blockchain data analysis company Santiment shows that the amount of bitcoin present on crypto platforms has fallen below the threshold of 6.95% of total supply.
This is the first time since November 2018 that this figure has fallen below 7%. This is a positive long-term factor, since investors’ holding of their bitcoins outside of platforms suggests a long-term holding intention. By contrast, an increase in the quantity of bitcoin present on the platforms is interpreted as an imminent intention to sell.
Santiment noted that the trend of taking bitcoins out of exchanges and storing them in crypto wallets has been around since March 2020, but was significantly accelerated by the FTX bankruptcy case.
Technical thresholds to watch on Bitcoin
Finally, from a chart perspective, last week’s low at $15,500 and the psychological threshold of $15,000 will be the first potential supports to consider if Bitcoin continues to fall below $16,000. Note that a fall below $15,500 would bring the crypto back to a more than 2-year low.
On the upside, the short-term charts point to a first intraday resistance around $16,600, before the psychological threshold of $17,000.