On Wednesday (October 9), Bitcoin continued to fluctuate weakly at $62,300. The Chinese market flashed the phenomenon of "negative premium" of USDT stablecoin, with USD/RMB at 7.06, but the Chinese over-the-counter transaction on the Binance platform showed that USDT/RMB was quoted at 6.92. The negative premium indicated that investors were turning from Bitcoin and the broad cryptocurrency market to A-shares.

According to Google, the USD/RMB exchange rate is temporarily reported at 7.06.

Binance's USDT China OTC price is quoted at approximately 6.92, with a negative premium rate of 1.878%, and even once reached over 2.5%.

USDT premium refers to the market price of USDT being higher or lower than the market price of its real dollar. Usually a "negative premium" means greater selling pressure in the market.

It is reported that the negative premium of USDT usually occurs when market demand decreases or liquidity is limited. The cryptocurrency community believes that this may be because speculative traders want to sell USDT and turn to Chinese A-share stocks. The discounted sale of USDT is to raise RMB funds faster, which leads to a negative premium due to price drops.

According to the observations of the cryptocurrency media BlockTempo in the Chinese cryptocurrency community, it can be found that some investors have begun to consider the strategy of allocating funds in A-shares, indicating an intention to shift from the cryptocurrency market (such as Bitcoin and USDT) to the A-share market.

An investor mentioned in the group, "I am going to switch to A-shares tomorrow" and "Is it time to sell U and move into A-shares in the next few days?", revealing plans to transfer funds from cryptocurrencies to the A-share market.

Although the signal of "exchange U for A" is obvious, it is worth noting that the rise of China's stock market seems to be facing obstacles.

Chinese stocks fell sharply in early trading on Wednesday, with Bloomberg reporting that the market was skeptical about the Chinese government's stimulus plan and there were signs of weak holiday consumption data.

The main A-share indices weakened, with the ChiNext Index plummeting by more than 9%, the Shanghai Composite Index falling by 3.49%, and the Shenzhen Component Index falling by 6.22%. Nearly 5,300 stocks fell in the three markets of Shanghai, Shenzhen and Beijing. The CSI 300 Index fell by 5.1% at one point, and then narrowed its decline.

"Recently, a netizen posted details of multiple bank loans on a social platform, with a total amount of up to 1.29 million yuan, and said that all the funds would be invested in the stock market to bet on high returns. The netizen listed loan data from multiple banks and credit card institutions, including bank loans, credit card loans, and many other personal loans," the report said.

It is important to emphasize that excessive use of loans for high-risk investments carries great financial risks, especially when the stock market is highly volatile, which may lead to huge economic losses. Investors should carefully assess their own risk tolerance and avoid falling into financial difficulties due to blind pursuit of high returns.

China's State Council Information Office announced at a press conference on Tuesday that the 700 billion yuan of funds currently used for the "two heavy" construction and the 1 trillion yuan of ultra-long-term special government bonds for the "two new" have all been allocated to local governments. Despite this, US media pointed out that the market is generally disappointed that China has not proposed more large-scale economic stimulus measures.

Bitcoin Technical Analysis

CoinPedia said that in the final stage of the "cup with handle" pattern, Bitcoin rose by more than 2% and rushed to $64,000. This area is a high resistance area, and the lack of liquidity caused Bitcoin to retrace. Currently, Bitcoin is still trying to get the support it needs very much. When Bitcoin was trading around $63,300, the liquidity area appeared below this point, which caused the price to fall. Before the decline, Bitcoin tried to break through the upper limit area of ​​​​$64,000, but failed to mark the support level.

Currently, the $62500-62800 resistance level does not allow it to break through. Since the current price is right in the middle of two liquidity zones, the confusion of the movement continues. It all depends on traders and investors in which direction the cryptocurrency will move.

Amid all the chaos, there is a glimmer of hope for Bitcoin. On the 4-hour chart, Bitcoin can see a double bottom about to form, with both the first bottom and the intermediate top already set. If this pattern successfully forms (which may take another 36 to 40 hours), the market may be able to see a breakout above $65,000. According to the Fibonacci indicator, the latest support level is at $61,400. For a double bottom to form successfully, Bitcoin must hit $60,000 again, which is exactly in line with the situation of whales shorting Bitcoin.