Bitcoin falls below $ 7,000 due to China’s plans to liquidate crypto exchanges

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Bitcoin falls below $ 7,000 due to China's plans to liquidate crypto exchanges

Today the bitcoin price has dropped below $ 7,000, the worst since May. The rate began to decline rapidly after The Central Bank of China has promised to strengthen the fight against local cryptocurrency exchanges.

On November 21, the People’s Bank of China warned that it will take action against anyone who violates the state ban on cryptocurrency trading. The statement says that if such entities are identified, they will be immediately liquidated in order to avoid their further expansion..

Chinese media reported today that the authorities have stepped up their search for violators and have already identified dozens of exchanges that work with virtual currencies. There were also mentions on the network about law enforcement visits to Binance and Bithumb offices, although the companies themselves deny this.

Bitcoin falls below $ 7,000 due to China's plans to liquidate crypto exchanges

Against the background of negative news from the Middle Kingdom, the bitcoin rate began to fall rapidly and today broke through the support level of $ 7000. At the time of publication, the BTC is trading at $ 6963, having lost 10.5% over the last 24 hours.

The chart shows a steady downtrend and oversold as the Relative Strength Index (RSI) is well below 50. The decline is also helped by the strengthening of traditional markets and the recent crossover of the 100- and 200-day moving averages, which has been confirmed by the long-term bearish indicator..

The fall will continue until the RSI rises above 53. Analysts do not exclude the possibility of minor rebounds, but to get out of the bearish trap, Bitcoin needs to rise above $ 8230.

text: Ivan Malichenko, photo: Shutterstock, chart: TradingView

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