After China announced that all activities related to cryptocurrency would be banned in the country, the cryptocurrency market reacted with a sharp decline. Today, the People’s Bank of China announced that any transactions, derivatives, the issuance of tokens will be prohibited. In addition, China has banned all foreign exchanges in the country.
After receiving news from China, the Bitcoin price lost more than $4000 and dropped to the area of 41000. On the hourly chart, the price draws 5 bearish candlesticks in a row.
As a result, the BTC/USD pair dropped below several important support levels and the 100-hour moving average. Bitcoin is holding back from a total sell-off by the support level of 40900. A break below this level will send the BTC/USD pair below $40000, where it will try to find support in the area of 39650.
If the bulls manage to regain control of the market today, they will try to bring the Bitcoin price back above $42000. A successful attempt will set the bulls on a gradual recovery in the price of Bitcoin.