February 20, 2024

Bitcoin exchange rate drops below $ 7000 due to China's plans to eliminate cryptocurrency exchanges

Bitcoin exchange rate drops below $ 7000 due to China's plans to eliminate cryptocurrency exchanges

Today, the price of bitcoin fell below $7,000, the worst performance since May.The rate began to decline rapidly after the Central Bank of China promised to intensify the fight against local crypto exchanges.

On November 21, the People’s Bank of China warned thattake measures against anyone who violates the state ban on cryptocurrency trading. The statement said that if such entities are identified, they will be immediately eliminated, in order to avoid their further expansion.

Today, Chinese media reported that the authorities have stepped up the search for violators and have alreadyThere were also mentions of law enforcement visits to the offices of Binance and Bithumb on the network, although the companies themselves deny this.

Against the background of negative news from the Middle KingdomBitcoin began to plummet and today broke through the support level of $ 7000. At the time of publication, the MTC is trading at $ 6,963, having lost 10.5% over the past day.

Bitcoin exchange rate drops below $ 7000 due to China's plans to eliminate cryptocurrency exchanges

The graph shows a steady downwardtrend and oversold, since the relative strength index (RSI) is well below 50. The fall is also supported by the strengthening of traditional markets and the recent intersection of 100- and 200-day moving averages, which was confirmed by a long-term bearish indicator.

The fall will continue until the RSI rises above 53. Analysts do not rule out the possibility of slight rebounds, but to exit the bear trap, Bitcoin needs to rise above $ 8230.

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