Major Fall In Cryptocurrency Prices: Bitcoin, Dogecoin, Polkadot tank up to 16%
Hyderabad: Major cryptocurrencies fell sharply on Tuesday 8th June. China blocked several cryptocurrency related social media accounts in the past few days. As a result, Crypto market took a major hit and eight out of top 10 digital currencies lost nearly 15% cent by 9.30 hours IST. Record outflows from the cryptocurrencies added to the woes.
The prices of Bitcoin and other major digital tokens like Ethereum, Dogecoin have halved from the peaks, eroding their weekly gains. Meanwhile, China, from where up to three-quarters of the world’s supply comes from, is curtailing mining and trading of cryptocurrency in the country.
Several crypto-related social media accounts in China’s Twitter-like Weibo platform were blocked over the weekend, as Beijing stepped up a crackdown on Bitcoin trading and mining. Moreover, more actions are expected, including linking illegal crypto activities in China more directly with the country’s criminal law.
“Almost all the major cryptos saw a steady decline in their prices over the past 24 hours. This drop was associated with low volumes, and hence this decline seems less likely to sustain,” said Edul Patel, CEO and Co-Founder, Mudrex.
According to digital currency manager CoinShares data, Bitcoin outflows hit $141 million in the week ending June 4, which equals to 8.3% of the net inflows seen this year. Overall, the cryptocurrency sector suffered a net outflow of $94.2 million last week, the data showed.
The Bank of England said on Monday that payments with ‘stablecoins’ (a form of crypto-currency usually pegged to a traditional currency) should be regulated in the same way as payments handled by banks if they are widely used in the near future.
Giottus Cryptocurrency Exchange View
Bitcoin (BTC) and Ethereum (ETH), the top 2 cryptocurrencies, have tanked up to 15 per cent in the last 24 hours to $33K and $2,500 levels respectively. This comes after a week of consolidation of BTC in the $34K to $38K range and has dumped hopes of a breakout rally that could have taken the price above $40K.
In terms of technical indicators, BTC’s hourly MACD is trending in the bearish zone indicating a possibility of a further drop. The Hourly RSI (Relative Strength Index) is below 50 level. The 50-Daily Moving Average shows a ‘Death Cross-over’ with the 200- Daily Moving Average, which means that the coins could tank up to more extreme levels. Bitcoin has failed to stay above the $35.5K support zone and it even broke the $34.2K support. Further, technical analysis also shows, the tokens would experience struggle to recover to the current levels.
The immediate resistance level now is $34.2K. Therefore, key support levels to look forward to if the decline continues are $33.2K followed by $32K. Major resistance levels which follows are $34.2K, $35K and $36K.
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
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