As the Bitcoin network continued to produce blocks in the early hours of the New Year, we saw the price of Bitcoin drop from around $34,900 to $33,000. Of course, the price has declined to $33,100 at the time of writing, but at this price the Bitcoin network has produced only 34 blocks, which is well below what would be expected on most days.

Bitcoin rose to a high of $3,648 last week, but has since fallen under $33,000. The fall has left many asking, what is going on? This week, I will take a look at the BTC price movements this year, and discuss how they fit in with an on-chain BTC accumulation model.

As the pressures placed on the market by China’s cryptocurrency crackdown begin to subside and the Bitcoin (BTC) hashrate starts to show signs of recovery, traders are now focused on how the price will be affected by this week’s unlocking of more than $550 million worth of Grayscale’s GBTC shares.

Data from Cointelegraph Markets Pro and TradingView shows that the early morning downtrend in BTC on July 12 continued into the afternoon as the price of BTC dropped below the $33,000 support level after bears took control of the market.

Daily cryptocurrency market performance. Source: Coin360

As the sell-off intensified into the afternoon the price of Ether (ETH) fell to the $2,000 support level after traders rushed for the exits.

While the majority of the market was in the red for the day, there were several projects that managed to rise above the noise and post gains on July 12, with Metal (MTL) putting up a gain of 18% while Revain (REV), Stratis (STRAX) and Injective Protocol (INJ) gained 12%

The overall cryptocurrency market cap now stands at $1.354 trillion and Bitcoin’s dominance rate is 45.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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