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Bitcoin falls on China crackdown, Death Cross formation

Cryptocurrency NewsJun 21, 2021 10:35
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© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin dropped below $33,000 on Monday on further evidence that China is looking to clamp down on cryptocurrencies and as the technical picture flashes a major sell signal.

China crackdown

On Friday, the local Development and Reform Commission’s Energy bureau in the province of Sichuan, China ordered the largest 26 local mines to stop operating as an investigation was conducted.

The probe will last until 25th June and has been viewed as a warning to many Bitcoin miners that it is time to relocate outside of China.

Local governments in other Chinese provinces with major cryptocurrency mining operations have also recently announced plans to halt mining, including in Qinghai and Xinjiang.

A video widely circulated on social media showed employees at what looked like a large cryptocurrency mining operation in China switching off the servers.

Further weighing on prices was a notice published on Agricultural Bank of China’s website that said the bank would not be participating in virtual currency transactions and related activities. AgBank, which is one of China’s big 4 banks, said customer accounts participating in such activities will be closed and customer relationships would be terminated. However, the notice on the website was deleted just minutes after being published.

Technical Picture

A major technical sell signal was formed in Bitcoin over the weekend where the 50DMA crossed below the 200DMA, marking what is known as a ‘Death Cross’.

The ‘Death Cross’ typically signals short term momentum has slowed and is a major signal that technical chartists follow. However, the last time a ‘Death Cross’ was formed in Bitcoin, in March 2020, a deeper sell off did not occur and a ‘Golden Cross’, when the 50DMA breaches the 200DMA to the upside, was formed two month later.

Bitcoin now trades at its lowest level since 8th June and further downside support is seen at $31,500 before the key psychological $30,000 level, according to OANDA Senior Market Analyst Jeffrey Halley.

At 10:30BST, Bitcoin was trading around $32,800, down 7% in the last 24 hours. Other major cryptocurrencies were also trading with losses with Ethereum dropping below $2,000 for the first time since 23rd May.

Bitcoin falls on China crackdown, Death Cross formation
 

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Comments (11)
kendrick antony
kendrick antony Jun 22, 2021 11:45
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counting blessings
Gladstone Ellisonstarboy
Gladstone Ellisonstarboy Jun 22, 2021 7:07
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i want to understand this more how it work well, am gladstone Ellisonstarboy
Alyff Girru
Alyff Girru Jun 21, 2021 12:38
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Not enough with corona virus, now this. Fkng china.
Scott Juliet
Scott Juliet Jun 21, 2021 12:38
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Can i be a friend
Mareks Boriss
Mareks Boriss Jun 21, 2021 12:38
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Anyything happens - Russia or China fault. Might look real situation who make this mess in the market?
Blain Redwood
Blain Redwood Jun 21, 2021 11:49
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Just like the world bank rejecting El Salvador's help with bitcoin due to environmental issues, and China clamping down on it. Other governments and organisations will follow suit.
Ugur Yilmaz
Ugur Yilmaz Jun 21, 2021 11:45
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It is a positive thing that China will be out of crypto ecosystem. There would be no manipulative fud coming from China in the future
Scott Juliet
Scott Juliet Jun 21, 2021 11:45
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My name is smith im looking for good Serious relationship
Emmanuel Erukson
Emmanuel Erukson Jun 21, 2021 11:45
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you are nothing but a bongy bongy you said your name is Smith and you have Scott Juliet on your profile
Vishal Singh
Vishal Singh Jun 21, 2021 11:21
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People are taking it in a negative way, rather its positive in the bigger sense because due to mining halt, supply/mining of Bitcoin will fall approx 80% as most of the mining comes from china, due to which demand will increase due to shortfall of supply and it will turn in a positive manner instead..!!
Chin Jimmy
Chin Jimmy Jun 21, 2021 11:21
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u assume that bitcoin is a limited resource. but these days there are other cryptocurrencies to choose from ya.
Chin Jimmy
Chin Jimmy Jun 21, 2021 11:21
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u assume that bitcoin is a limited resource. but these days there are other cryptocurrencies to choose from ya.
bill bill
bill bill Jun 21, 2021 11:21
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Chin Jimmy it is a limited currency!
bahrullah Baharuddin
bahrullah Baharuddin Jun 21, 2021 11:06
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nice...
Victoria Iwuagwu
Victoria Iwuagwu Jun 21, 2021 10:59
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dennis Daniel
tekem ulrich
tekem ulrich Jun 21, 2021 10:50
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Bitcoin miners in China should start thinking of relocating to El Salvador ASAP
Rinal Rahman
Rinal Rahman Jun 21, 2021 10:49
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Lancau la
Wayne Stokes
Wayne Stokes Jun 21, 2021 10:43
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You dollar holders hate bitcoin we know! The dollar’s the one giong to zero! Everyone knows banks are stealing peoples money! Their business is built on fraud, Everyone knows it! Blockcain is the peoples hedge agains corrupt banks!
 
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