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NEW DELHI: Major cryptocurrencies fell 21% on Tuesday as market participants worried about China’s growing crackdown on Bitcoin mining and restrictions on digital tokens. Following the recent volatility, the top 10 digital tokens were trading with declines at 9:30 am IST, with three of them sliding between 14% and 21%.
China’s central bank said on Monday it had recently summoned some banks and payment institutions, urging them to crack down on cryptocurrency trading. The People’s Bank of China has urged institutions to quickly shut down payment channels for cryptocurrency trading.
China’s biggest banks on Monday pledged not to help customers trade Bitcoin and other cryptocurrencies, and executives have been urged to step up enforcement of a government ban.
The four major state-owned commercial banks and the payment service Alipay have pledged to step up monitoring of customers and block the use of their accounts to buy or trade cryptocurrency.
“Over the past week or so, the crypto markets have seen a further decline as Bitcoins and Altcoins continue to follow the downtrend. Most analysts and traders continue to maintain a bearish position in major assets. Short-term sentiment has turned bearish, and traders are closing their positions to accumulate money, “ZebPay Trade Desk said.
“This in turn impacted BTC’s recovery journey, and the same can be implicated among altcoins. Additionally, BTC was beaten after China expanded its crackdown on its massive crypto mining industry. Currency in some key provinces on Monday. However, at current levels, most major coins look pretty attractive and the whales have started to accumulate at these levels quite aggressively. ”
Back home, the cost of buying Bitcoins and other cryptocurrencies may have increased by around 2% for investors who bought them from exchanges outside the country, as they are all subject to an additional tax in the form of an equalization levy.
In addition, major Indian crypto exchanges are set to join IndiaTech, an industry association representing mainstream internet startups, unicorns and Indian investors, to increase pressure on the government to regulate crypto in India.
Technical view by Giottus Cryptocurrency Exchange
Bitcoin At the moment, Bitcoin is not singing a happy tune. It collapsed on an ascending wedge and symmetrical triangle that took over 4 weeks to form. Bitcoin mimics Wycoff’s model, and a crash will likely start once the $ 29,000 support is broken. However, as with the three previous instances in the last month, it continues to hold $ 31,000 to $ 32,000 as support.
Bitcoin has also created a giant head and shoulders pattern since January 1 (a pattern that investor Michael Burry himself tweeted this week). A Head & Shoulders pattern signals a bullish to bearish reversal – in the case of Bitcoin, a bullish run that has taken place since the start of 2021. The model’s neckline support ends at $ 29,000, which further increases l importance of this support.
ETMarkets.com major level support: $ 31,000, $ 29,000, $ 27,000 Resistance: $ 33,400, $ 36,800, $ 39,200
Dogecoin (DOGE) Elon Musk’s favorite cryptocurrency Dogecoin (DOGE) has been severely beaten over the past month. Made worse by Musk not tweeting about it, the coin has been on a downward spiral since the rejection of its last resistance ($ 0.44).
Due to the recent BTC outage, DOGE broke down the neckline support of a giant H&S model, making it bearish. If the breakout is confirmed, the next critical support to look for is $ 0.16. If it is broken, it can fall in free fall.
Basically there are a lot of things that need to change to reverse the sentiment. Musk spoke about working with DOGE developers to increase their transaction throughput and lower fees. But the market has yet to see any updates or results of such claims.
Support of the main levels of ETMarkets.com: $ 0.21, $ 0.18, $ 0.16 Resistance: $ 0.25, $ 0.28, $ 0.30
(The opinions and recommendations given in this section are those of the analysts and do not represent those of ETMarkets.com. Please consult your financial advisor before taking a position in the mentioned asset (s).)
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