Analytics / Forex and Crypto News
Bitcoin price continues to fall under the influence of bears and fundamental data. After the price of Bitcoin recovered to the area of 40000, it has been showing a steady decline. But if yesterday the BTC/USD pair was trading above 31000, today it dropped below 30000 and at the time of publication is trading in the area of 29400.
The sell-off intensified, and with it bearish sentiment, after the price of Bitcoin fell by 50% from its April high. As the price of Bitcoin declines, so does the volume of sales.
Analysts associate today's decline in the price of Bitcoin with yesterday's decision by the Bank of China. The bank ordered all commercial banks to block accounts linked to OTC platforms. Thus, the Chinese authorities are putting pressure not only on miners but also on ordinary cryptocurrency holders. Due to pressure on miners, leading Chinese mining companies have stopped mining cryptocurrencies in China and moved their capacities to other countries.
If you look at the chart of the BTC/USD pair, you can see that it is trading at its lowest level in the last 6 months. The BTC pair was trading below 30000 at the end of January. The breakdown of the support level of 30000 opened the way for the pair to further decline. In our case, the bulls may try to stop the price at around $28500. If they fail to do so, the pair could drop to the area of 27600.
On the daily chart, the RSI indicator is in the neutral zone, showing a downtrend. We can expect a further decline in the BTC/USD pair in the near future and the indicator entering the oversold zone.
Investment bank JPMorgan has released a report on the state of the cryptocurrency market in the second quarter of 2021. The report noted that as a result of a sharp decline in the price of cryptocurrencies in April and May of this year, institutional investors began to massively sell Bitcoins