Sat. Oct 16th, 2021

If last month we commented that the cryptocurrency market was collapsing with falls reaching 30% and 40% on Bitcoin and Ethereum after the People’s Bank of China announced a ban on payments with Bitcoin in its country, closing thus the doors to millions of users in his country that caused a massive sale of these products around the world, in recent sessions, a new blow from the Asian giant has caused the disappearance of about $ 300 billion inside of the digital currency market.

On this occasion, in a new attempt to control the cryptocurrency market in this country, the Beijing government has ordered bitcoin miners to close all their operations, while the People’s Bank of China stated that investors in ‘This sector favors money laundering and other criminal activities and therefore poses a serious detriment to the security of the Chinese people.

In addition to the cryptocurrency market, one of the big losers in these restrictions includes companies like Coinbase, which currently trades at $ 222.60 per share compared to the $ 328 it began on April 14, during an upward spiral without precedents in which Bitcoin topped $ 64,000.

If we look at the daily chart of Bitcoin, we can see how, after setting historical highs, it has experienced a strong correction. This is in line with the bearish divergence we observed in its MACD indicator, which has led it to lose around 50% of its value before currently operating in a significant side range represented by the green and red bands between the levels. of $ 30,000 and $ 40,000 for Bitcoin.

During this significant decline, the price has broken several major supports, causing a triple cross of bearish averages, which may involve a new price correction if the price is finally able to break the lower side of the sideways movement and the $ 30,000 level. .

As long as the price does not recover steadily, the significant level of resistance coinciding with its 200-session average and the Fibonacci retracement level at 38.2% at $ 40,000, sentiment will remain bearish, although for a higher momentum it is necessary that the price manages to exceed the important level of support and resistance, represented in orange.

Source: Admiral Markets MetaTrader 5. Btcusd daily chart. Data range: July 23, 2020 to June 22, 2021. Prepared June 22, 2021 at 11:45 am CEST. Please note that past returns do not guarantee future returns.

Evolution in the last 5 years:

  • 2020: 302.3%
  • 2019: 94%
  • 2018: -73.2%
  • 2017: 1337.7%
  • 2016: 124.1%

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