Bitcoin price in USD dipped below the long-held support at $30,000 on Tuesday, hitting rock bottom level since Jan. 28.
The cryptocurrency traded at $29,700 shortly before press time, bringing the year-to-date gain right down to just 3%, consistent with CoinDesk 20 data.
The drop comes each day after the People’s Bank of China ordered the country’s major financial institutions to prevent facilitating crypto transactions and signals an end of the four-week-long consolidation between $30,000 and $40,000.
Bitcoin price drop
Bitcoin hit a two-week low as China tightens its grip on cryptocurrencies. As of 8:50 a.m., the largest virtual currency has dropped 10% to $32,350. in NY. Ether declined 13% to $1,950.
China announced on Monday that it summoned officials from its biggest banks to a gathering to reiterate a ban on providing cryptocurrency services. It’s the newest sign that China decides to do whatever it takes to shut any loopholes left in crypto trading.
Representatives from the Agricultural Bank of China Ltd., the Industrial and Full-Service Bank of China Ltd., and the Industrial and Full-Service Bank of China Ltd. According to a press release issued by the financial institution on Monday, Chinese banks and payment service provider Alipay have been reminded of restrictions prohibiting them from engaging in crypto-related transactions.
From the record highs of quite $63,000 hit in mid-April, bitcoin has shed nearly 50% as regulators in China clamp down on mining within the country. Tesla CEO Elon Musk’s negative statements on bitcoin price in USD environmental impact haven’t benefited bitcoin prices either.
Now that the bitcoin price in USD has breached the important support point of $30,000, traders are bracing for a further selling wave within the near term.
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Bitcoin Price Prediction Outlook
Look out for price action at the lower fringe of the bearish flag. The bearish flag will be verified if the candles break below this level, and we may see a measured move towards 24000. 20000 and 17652 form additional support targets below this area.
Only a bounce from the flag’s lower edge and therefore the subsequent breach of the worth wall around 40000 negates the pattern. An opportunity of 43569 allows for a further recovery towards 46200 before 50000 comes into view. This trajectory has got to be followed for the bearish bitcoin price in USD prediction to be invalidated.
Hash rate tumbles
Evidence of the mining curbs’ impact is beginning to emerge. The so-called hash rate of the Bitcoin network – a measure of its processing power that shows what proportion mining is happening, on Monday hit its lowest level since late 2020.
Authorities in major Bitcoin mining hotspots including Sichuan, Xinjiang, and Inner Mongolia have issued their own bans with more specific data.
Iran in late can also ban the energy-intensive mining of cryptocurrencies like Bitcoin price in USD for nearly four months because the country faces world power blackouts in many cities. On Tuesday, state media reported that police have seized 7,000 computer miners at an illegal crypto farm, their largest haul so far of the energy-guzzling machines.
Three industry associations in China last month issued an identical ban on bitcoin price in USD related financial services, though market players said it might be hard to enforce as banks and payment firms could struggle to spot crypto-related payments.
Beijing’s targets are crypto miners, but China’s State Council, or cabinet, said last month it might tighten restrictions on producers also as traders of Bitcoin.