Crypto market continues to struggle following China’s Ban
The price value of Bitcoin suffered a blow following ban on cryptocurrency by Chinese government. However, it has recovered on Monday.
New Delhi: Following the ban on cryptocurrency transactions and mining, the People’s Bank of China (PBOC) has declared all cryptocurrencies as illegal in the country which witnessed a downfall in the Bitcoin price value. Restricting the citizens from holding accounts in the onshore exchanges by the citizens, PBOC closed the loophole exploited by investors.
In April, Bitcoin has reached over $60,000. However, the recent movement focuses on the volatility of cryptocurrency in a time when more people are getting interested in the action. Several analysts have cast thoughts on the recent downfall of Bitcoin.
“You have a high chance of losing it all, but a small chance of winning it big,” said Nate Nieri, a CFP with Modern Money Management in California’s San Diego. He further added, “Don’t gamble an amount that would burden your family or prevent you from achieving your goals” if you lost it all.
However, on Monday, Bitcoin prices have recovered where they hovered around $44,000 and Ethereum traded near $3,100 levels before the announcement of Beijing. The primary reason for its comeback is that the crackdown by Beijing is nothing new to crypto traders. The Chinese government is known to impose some type of ban seven times in the last few months, thus already creating an impact on the investor’s sentiments.
However, in regards to the price movement, the Relative Strength Index (RSI) for the Bitcoin price value on the everyday time frame shows that the price values are oversold. Still, enough upward momentum for the price of Bitcoin is witnessed which can further push the price lower.
Meanwhile, Bitcoin price on several occasions has assessed 40k price level and it might be considered that the price can move below 40k in recent times. Below is the chart of Bitcoin price:
