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BTC Price Analysis: Bears $30K Plunge Picks Up Bid at Support on Bitcoin Amid China Crypto Crackdown

  • Amid BTC sharp sell-off, the bears $30k plunge picks up bid further today at $32,538 and stays near intraday highs of $34,513
  • If BTC/USD continues to ascend, the market will be pushed until it reaches the $37,500 level
  • China has undertaken a crypto crackdown, threatening banks and payment companies

The BTC/USD pair declined from last week’s high of more than $40,000 to $28,800 hitting a fresh multi-month trading low at the support on Tuesday. Since then, Bitcoin and other cryptos have rebounded. Although it is still posting losses weekly after a bullish day while remaining beneath the $35,000 handle. Amid BTC’s sharp sell-off, the bears $30k plunge picks up bid further today at $32,538 and stays near intraday highs of $34,513. If BTC/USD continues to ascend, the market will be pushed until it reaches the $37,500 level. China has undertaken a crypto crackdown, threatening banks and payment companies to stop offering services related to virtual currency trading, as well as miners across the country. BTC has been losing value due to concerns that the future of currency will be digital fiat currencies rather than Bitcoin.

Key Levels
Resistance Levels: $40,000, $37,500, $35,000
Support Levels: $33,000, $30,000, $28,800

BTC/USD Daily Chart: Ranging

BTC/USD Daily Chart

After the recent plunge to $28,800, the BTC/USD is reversing its losses and remains below the $35,000 mark. The moving averages (MA 50 and MA 200) have completed a death cross on the daily chart. The daily Relative Strength Index is extending its positive movement above its oversold zone and 40 lines, while the price is ticking up into positive territory.

If the pair continues to ascend, it will take the market beyond the $37,500 level, which is before the moving average (MA 50), which is now at $41,000. If prices continue to fall, they may return beneath $30,000, a rebound zone of the down leg from $28,800 to $34,513, before heading up to $40,000. A move downward, on the other hand, might send the bears to the psychological threshold of $20,000. The plunge just below this level could put an end to the bullish trend.

BTC/USD 4-Hour Chart: Ranging

BTC/USD 4-Hour Chart

As seen on the lower time frame, BTC/USD hits a fresh multi-month trading low on Tuesday at the $28,800 support level. A critical analysis of the chart reveals that the pair struggled to break through the $31,000 support level. It’s also below short-term moving averages (MA 50 and MA 200), and the current low of $28,800 is below the key support zone of $31,000-$30,000.

If the bulls can keep the price above the $33,500 level, the rally might continue towards $37,500. The BTC/USD pair is only bullish when it trades over $33,000, with important resistance at $35,000 and $37,500. Sellers may test the $30,000 and $28,800 levels if the BTC/USD pair goes below $33,000. Although BTC is still below the moving average 5 & 13, the RSI on the four-hour chart is not yet overbought, suggesting more room for a movement to $36,000.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

Image Credit: Shutterstock

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