By Samuel Indyk
Investing.com – The price of Bitcoin dropped below key support at $33,000 on Thursday to trade at its lowest level since 27th June.
After failing to make a clean break above $35,000, and finding resistance at the 21DMA around $34,000, the drop has led to some to call for another test of the psychological $30,000 level which Bitcoin has not fallen below since the mini crash on 22nd June.
The latest pullback comes in a week where China has taken further measures against companies in the cryptocurrency sector. On Tuesday, China’s central bank forced a company to cancel its business registration and closed its website amid allegations they were providing crypto-related services.
China has increased scrutiny on the industry in recent weeks as it upped its ban on mining activity, which has seen the total hashrate (the total computing power used to mine Bitcoin) on the network drop by around 50%.
However, there is still little to suggest that Bitcoin will break out of its roughly $30,000-$40,000 range that it has traded in since the crash in the middle of May.
On a technical level, after dropping through trendline support around $33,000, the next major level of support comes in at the 26th June low of $30,300 before the psychological $30,000 level. Below that, the 22nd June low of $28,900 will be key.
To the upside, the previously mentioned 21DMA around $34,000 has acted as resistance, as has the key psychological $35,000 level. The 50DMA at $35,900 could also act as resistance if a break above $35,000 is confirmed.
At 14:00BST, Bitcoin was trading around $32,600, down 6.5% in the last 24 hours.