Another negative news for Bitcoin from China - Kakiforex.com - Financial Market Media No. 1 in the World Another negative news for Bitcoin from China Another negative news for Bitcoin from China

June 22, 2021

Another negative news for Bitcoin from China

 The world's first cryptocurrency continued its decline yesterday. Thus, the quotes really pushed off from $41,000, which is the approximate border of the side channel, and fell to the level of $31,100, which, after a slight adjustment, is the lower border of the side channel. And it turns out that the quotes have already bounced three times from the new lower border of the sidewall. Thus, a strong support area for bitcoin is formed here. The fundamental background for bitcoin did not change at all during Monday. To be more precise, it only got worse. Earlier, we have already said that we consider the news from China and the United States to be the most important for bitcoin in the near future. Some countries of the world have started an outright war with bitcoin and, of course, the actions of the authorities of the United States and China should be most feared, since we are talking about two of the three countries in the world with the largest economies. In China, four regions have already completely banned mining and, most likely, this trend will continue in the near future. In addition, it became known yesterday that the Agricultural Bank of China, which is the third largest in the country, banned its clients from carrying out any transactions related to cryptocurrencies and other digital assets. The bank has warned about blocking the accounts of customers who are seen trading in digital assets. The most interesting thing is that this warning from the bank was removed from its website within a few minutes. However, Chinese analysts do not consider it a mistake and say that, most likely, the corresponding decision was made at the highest level of government and concerns all banks in China. Thus, most likely, all Chinese banks will have to announce the innovations at the same time. Or the National Bank of China will personally announce a new ban. Thus, in China, any transactions with cryptocurrencies will now be prohibited for companies, firms and exchanges and their clients. As for the private interest and demand for cryptocurrencies, everything is not yet clear. But in any case, China has taken a huge step forward to oust bitcoin and its "counterparts" from its territory. The next step is for America, where they also want to tighten the legislation, although only the part of it that concerns taxes and the regulation of bitcoin circulation. In any case, the trend now is that the countries of the world are tightening their legislation on bitcoin (except for El Salvador). Thus, from our point of view, the fundamental background for bitcoin remains extremely negative, and moreover, it worsens day by day.


In technical terms, bitcoin has fallen to the support level of $31,100 and now it can rise and start a new round of movement to the upper limit of the side channel – $41,000. Thus, a rebound from the level of $31,100 will trigger the beginning of a new round of growth inside the flat. The consolidation of the bitcoin quotes under the level of $31,100 may signal the readiness of the cryptocurrency for a new fall. Recall that many crypto experts speak in favor of the fact that the main cryptocurrency will continue to fall in price and may fall to $19,000 - $24,000 per coin.