Bitcoin Supported Over Triple Bottom $31K
The BTC/USD was closed at $31761.0 after placing a high of $35631.0 and a low of $31475.0. Bitcoin fell below the $32,000 level on Monday and continued its bearish streak for the 6th consecutive session amid China's intensified crypto mining crackdown. As a result, BTC/USD fell below the $32,000 level for the first time since June 8. Bitcoin sank to its 2-week lowest level on Monday after reports from China suggested that the country's government has intensified its crackdown on the mining of cryptocurrencies. According to a report from a newspaper backed by the Communist Party, Global Times, the authorities in the southwestern Chinese province had ordered to halt crypto mining that shut down many bitcoin mines in the Sichuan region.
Following this order, the third-largest bank in China, the Agricultural Bank of China (ABC), banned its customers from interacting with bitcoin and other cryptocurrencies, leading to a massive price drop in BTC/USD. According to a report printed by ABC on Monday, the ban will prohibit its customers from doing any transaction or business related to cryptocurrencies. Furthermore, it means the client's account will be immediately terminated if the bank will discover any activity or interaction with bitcoin or other digital assets.
The crackdown from China appeared to have to lead a significant decline in the hash rate of bitcoin. The prices of bitcoin, along with the hash rate, have fallen sharply in the last month. China has been engaged in doing an estimated 65% on the global bitcoin mining. Reports have suggested that about 90% of the bitcoin mining in China has been stopped due to China's recent ban on crypto mining. The hash rate of bitcoin has been dropped to its lowest in 8-months amid the halted mining operations in China.
Furthermore, the host of CNBC's Mad Money, Jim Cramer, said that he has sold almost all of his bitcoin holdings and highlighted the reason behind this move as the renewed regulatory crackdown in China and the role of bitcoin in ransomware attacks.
A former hedge fund manager, Cramer, argued that the BTC's drop in hash rate should have resulted in gains for the asset's price. He said that instead of going up because of limited mining, bitcoin was going down as people were redeeming. When the coin is outlawed or is made more challenging to be mined, it should go up unless there is a worldwide redemption.
On the flip side, MicroStrategy, the U.S.-based publicly traded business intelligence, continued to hoard the leading currency despite the crypto markets were erasing more than $300 billion in market cap. MicroStrategy reported on Monday that it had made an additional purchase of 13,005 BTC for about $489 Million in cash. This news gave some support to the declining prices of BTC/USD on Monday.
BTC/USD Intraday Technical Levels
Support Resistance
34248.6 36489.6
32866.3 37348.3
32007.6 38730.6
Pivot Point: 35107.3
BTC/USD - Technical Outlook
The technical side of Bitcoin hasn't changed a lot as its price continues to consolidate at 32,600 zones. However, considering the daily timeframe, the BTC/USD is supported by an upward channel extending support at the 31,110 level. The Bitcoin is also gaining support over the triple bottom support level of 31,110 mark, but the violation of this level exposes bitcoin price towards next support level of 29,562 level.
The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Thus, bearish bias still continues to dominate the market on Tuesday. All the best!
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