The technical sell signal for Bitcoin, the most widely used cryptocurrency in the world, was activated over the weekend. This signals more downside.
Bitcoin experienced a bearish death cross. This is when the 50-day moving mean (DMA), falls below the 200-day moving mean. Technical analysts and traders are closely following this signal.
According to cryptocurrency trading website, coindesk.com, the crypto coin traded lower at $32,715.28 at 19.48 IST Monday. Its market capitalization also fell to $613.03 million. Its lowest 24-hour trading value was $31,744.99, while its highest was $36,119.80. It traded at $34,246.37 on Monday.
Bitcoin plunges 10% after China’s deepening crackdown
The lagging crossover indicator, which alerted traders to the fact that bitcoins were consolidating their uptrend and most likely to continue it, led to lower prices. Bitcoin stocks fell by 14 percent Monday morning following Saturday’s death cross.
According to reports, the technical sell signal for cryptocurrency was activated after negative news flows including China’s ongoing crackdown on bitcoin mining. Chinese authorities intensified their crackdown against cryptocurrency mining this weekend. The Sichuan province saw 26 of the largest miners be ordered to stop operations by bodies, reported Business Insider.
The report also claimed that Chinese officials met with representatives from major banks to renew a ban on crypto services.
According to Coinmarketcap, cryptocurrency including bitcoin and ether dropped by around 6 and 4 percent, respectively.
The Chinese state media outlet Global Times reported that over 90% of China’s bitcoin mining capacities would be shut down Monday.
MicroStrategy CEO Michael Saylor sees the decline in bitcoin as an opportunity to buy. According to the firm, it acquired $489 million more bitcoins, which brings its total bitcoin holdings up to 105.085 bitcoins.
Bitcoin experienced a golden cross in May 2020. However, the cryptocurrency has risen by more than 300% since then.