The latest crackdown from China on Bitcoin mining caused the cryptocurrency hashrate to fall and as well affecting Ethereum, BNB and XRP.
When major Chinese banks stopped all cryptocurrency-related transactions, the prices of Bitcoin and Ethereum were hit hard. The recent crackdown came weeks after local directives aimed to eliminate mining operations.
Bitcoin (BTC) and Ethereum (ETH) fell -3% and -6%, respectively, while large-cap cryptocurrencies such as Binance (BNB), XRP and Cardano (ADA) fell Up to -15%.
As the Chinese authorities banned the operation of mining centers in the country, Bitcoin’s hashrate also continued to decline.
“Hashrate” refers to the overall computing power on the network, making it more secure and resistant to external attacks.
However, the ray of hope appeared in the form of a business analysis company MicroStrategy, announcing that “at an average price of approximately US$37,617 per bitcoin, an additional 13,005 bitcoins were purchased with approximately US$489 million in cash.”
This action shows that the institutions’ interest in bitcoin remains Very high. At least for now.
MicroStrategy has purchased an additional 13,005 bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we #hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin. $MSTRhttps://t.co/gLfnOxZEZc
— Michael Saylor (@michael_saylor) June 21, 2021
The candle stick closing price yesterday verifies the “death cross”: the death cross occurs when the 50-day moving average is below 200 days moving average.
This is usually regarded as one of the most important trend indicators, indicating that it will dip further in the next few days.
As the negative news hits the price and the major indicators turn bearish, the price of Bitcoin may face more troubles. The price of $33,000 is the key support that must be maintained.
A close below this support level will cause further declines. If the price falls further, there is no solid support in the $30,000 range.
If negative news continues to affect prices, it is also possible to see levels below $30,000.
The chart for Ethereum remains bearish, falling below the 20MA a few days ago and is currently testing great diagonal support.
The only area that can rebound is the 200MA. If the price manages to close above the 200MA and the support level of $1,966.
