China's attempt to ban mining comes to fruition as their grip gets tighter around this policy. These digital miners now have no choice but to stop everything they're doing in China or move elsewhere which is temporarily hurting the coin's hash rate. Banks are now being told to cut all crypto transactions in the country where most of the mining is happening. The price of bitcoin fell over 8% so far this week on the bad news. This could be good news, however. It might actually be better for crypto to move from China and migrate to various parts of the world such as America. This could lead to America serving as the central hub where most digital assets move through, giving the US a leg up on other countries. There have been talks of major mining entities moving from China to Texas.
Bitcoin's Death Cross:
Within the past couple days, the 50 and 200 day moving averages crossed, in the bearish sense. The 50 crossed under the 200 DMA marking what investors call a death cross or a significant bearish technical signal for upcoming price action. Since the cross, bitcoin's price has fallen over 10% to as low as $31,600s in a possible consolidation zone.
Retail is Now Net Long...:
The majority of retail investors are now net long on bitcoin for the first time since October of last year. Mind you, that period of time between then and the coin's all time high moved price up as much as 530%. And now that we're starting to see this crypto in a steady downtrend since April 18, over half of retail investors are buying. This could be a good sign for crypto bulls, but usually when the majority of people are buying, big money has already locked in several short positions to push price lower. Although this could be a good sign, it's important that we watch for a potential downtrend so we know how to protect our money.
The 50 crossing below the 200 DMA looks gloomy right now, but a bigger level is at play. Price is now in a consolidation zone between $28,920 and $34,762 which could serve as tremendous support. This key level will likely help determine the coin's overall direction for the mid to long term as in a break under would probably mean a big fall to the $20,000s and a break could mean a move back up to the $46,000s.
I often like to cover doge with bitcoin because they are closely tied in price action. Similar to bitcoin, doge has dipped its toes in stagnant water. Between 15 and 20 cents roughly is our zone of consolidation, and will be our biggest player to take part in the coin's direction. Around the 15 cent mark lies doge's 200 day moving average. If price can come down to this level, it might actually be a good place to look for entries, if you are a believer in this meme coin.
Price looks like it's fond of the 200 DMA for Binance coin on the 1D chart. It also appears that price will test that moving average one more time. If price can bounce up from that, it will create a higher low, suggesting a bullish move will happen. But, if the coin breaks under, it can find support at its previous recent bottom around $210.60s. BNBUSD is currently down 10.93% on the day at the time of writing this.
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