9/24/2021
The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%.
Our outlook
I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short term, this puts a ton of pressure around these digital coins, but lower prices seem like they're setting up better deals for long term success. Mining has already moved away from China as mining activity is starting to pick back up elsewhere. I think we're seeing another sale of cryptos: bitcoin below $40K and Ethereum below $3K seems like great spots to consider getting in.
Trade Setups
BTCUSD
Bitcoin just under support in the $42,000s and possibly making a higher low on the 1D chart. The golden cross is still relevant for this pair, but COT will have to pick up some and help out price action. Additional support lies underneath around $37,300s.
ETHUSD
Price action is the same for ETHUSD as it looks to be making a higher low on the 1D chart. Price is just above its 200 DMA which could act as support should price fall all the way back down to this level. More support is under around $2438.
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