Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $39,669.81 (-12.27%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $2,945.96 (-15.92%), while Binance Coin has dropped by 18.29% and is now trading at $430.28.
FxPro's team of analysts say:
"Pressure on Bitcoin has returned, resulting in its price dropping below $40,000 (-13% over the past day). The largest crypto on the market failed to develop a rebound yesterday. Buyers' interest dried up when the coin reached $45,000.
The bulls' offensive has been hampered by news from China, where financial and payment companies are now banned from offering services to crypto firms. While this new move to clear the market ahead of the introduction of the digital yuan is not surprising, it has made the market situation even worse. The drop in early morning trading on Wednesday is the Chinese reaction to the news, which was released late in the evening local time.
From a technical analysis point of view, we have observed an acceleration of the downtrend, the limits of which have not yet been delineated. Critical support levels are far away, in the $30,000-32,000 area, where the 200-day moving average (now at $31,500), a significant round level ($30,000), as well as the support area during the January correction are located.
However, it is very likely that Bitcoin and the cryptocurrency market as a whole will begin to receive support not in terms of levels, but over time, with the onset of active trading in Europe and the United States in the context of an impressive short-term correction and oversold."
According to CoinMarketCap’s ranking, all currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,827,193,544,520.
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