New Delhi: Major cryptocurrencies fell sharply on Tuesday. Eight out of top 10 digital currencies lost 10-15 per cent by 9.30 hours IST. Crypto market took a hit after China blocked several cryptocurrency related social media accounts. Record outflows from the cryptocurrencies added to the woes.
The prices of Bitcoin and other major digital tokens have halved from the peaks, eroding their weekly gains. Meanwhile, China, where up to three-quarters of the world’s supply comes from, is curtailing mining and trading.
Several crypto-related accounts in China’s Twitter-like Weibo platform were blocked over the weekend, as Beijing stepped up a crackdown on Bitcoin trading and mining. More actions are expected, including linking illegal crypto activities in China more directly with the country’s criminal law.
“Most of the major cryptos saw a steady decline in prices over the past 24 hours. This drop was associated with low volumes, and hence this decline seems less likely to sustain,” said Edul Patel, CEO and Co-founder, Mudrex.
According to digital currency manager CoinShares data, Bitcoin outflows hit $141 million in the week ending June 4, representing 8.3% of the net inflows seen this year. The cryptocurrency sector overall suffered outflows of $94.2 million last week, the data showed.
The Bank of England said on Monday that payments with ‘stablecoins’ – a form of crypto-currency usually pegged to a traditional currency – should be regulated in the same way as payments handled by banks if they start to become widely used.
Giottus Cryptocurrency Exchange View
Bitcoin (BTC) and Ethereum (ETH), the top 2 cryptocurrencies, have tanked up to 10 per cent in the last 24 hours to $33K and $2,500 levels respectively. This comes on the back of a week of consolidation of BTC in the $34K to $38K range and has dampened hopes of a breakout rally that could have taken the price above $40K.
In terms of technical indicators, BTC’s hourly MACD is trending in the bearish zone indicating a possibility of a further drop. The Hourly RSI (Relative Strength Index) is below 50 level. Bitcoin has failed to stay above the $35.5K support zone and it even broke the $34.2K support. The price is struggling to recover to this level currently.
The immediate resistance now is $34.2K. Key support levels to look forward to if the decline continues are $33.2K followed by $32K. Major resistance levels are $34.2K, $35K and $36K.
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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