Bitcoin trending lower on China crackdown, support at $36K-$40K
|Bitcoin (BTC) sellers were active during Asia hours after China’s central bank declared cryptocurrency-related business illegal. BTC slipped below $42,000 and is down about 3% over the past 24 hours. Initial support is seen at $40,000, which could stabilize the pullback.
A series of lower price highs from the $50,000 resistance level reflects slowing upside momentum this month. The intermediate-term uptrend has weakened, although short-term buyers could defend lower support levels into the weekend.
-
The relative strength index (RSI) on the daily chart is rising from oversold levels last week, which could limit additional selling.
-
The 100-day moving average at $40,000 could provide short-term support. If broken, the next level of support is seen at around $36,000, which is the middle of a four-month price range.
-
Resistance remains strong above $46,000 as buyers continue to take profits.
Bitcoin daily price chart (CoinDesk, TradingView)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.