Top 3 Price Prediction Bitcoin, Ethereum, Ripple: PBOC Crackdown on Crypto Trading, Sends Bitcoin on a Tailspin to $30,000
- Panic swept across the cryptocurrency market as China's central bank intensified crackdown on cryptocurrency trading.
- Bitcoin revisits support at $31,000 and may drop further if this seller congestion zone weakens.
- Ethereum could retest $1,700 before starting another recovery attempt.
- Ripple is back to May lows at $0.65 amid calls for losses aiming for $0.5.
Bitcoin plunged farther from $40,000, closing the gap heading back to $30,000. The downfall dragged altcoins into a second selloff within the same month. Similarly, massive liquidations have been recorded on the various derivatives trading platforms, amounting to almost $1 billion in 24 hours.
The volatility in the market is connected to the meeting the People's Bank of China (PBoC) had with the nation's major banks aimed at stricter measures to purge cryptocurrency trading. For instance, the Agricultural Bank of China posted an announcement on its website warning its customers that those dealing with crypto will have their accounts closed.
Although the post was put down in a few minutes, it had already been circulated on social media channels, sending jitters across the cryptocurrency market on Monday morning. Other banks have also issued letters of notice to their customers, warning them to avoid Bitcoin transactions or risk their accounts being closed.
The pressure on the banks is believed to come from the central bank in China. Instructions from the regulator are that banks should freeze payment channels supporting trading activities and services that are considered illegal in the county.
Bitcoin bulls gasping for air amid the massive retreat to $30,000
Bitcoin came down from levels slightly above $40,000 in the second week of June. Initially, the retreat occurred due to the lack of momentum to sustain the uptrend. However, the crackdown on crypto trading activities in China sent BTC on another tailspin.
At the time of writing, the largest cryptocurrency is trading marginally above $32,000. The recent support at $31,000 prevented the bearish leg from stretching to $30 and the areas below.
Closing the day above $32,000 may call for stability, allowing bulls to hold focus on gains toward $40,000.
BTC/USD four-hour chart
Ethereum slides back to the drawing board
Ether trades under $2,000 after massive sell orders were triggered amid Bitcoin's downswing to $31,000. Last week's trading saw $2,400 function as a formidable support zone. However, bears ferociously swung into action after they overcame it.
At the time of writing, Ethereum trades at $1,950 amid a growing bearish grip. If support at $2,000 is not reclaimed in the near term, we can expect losses to soar toward $1,700.
The retracement is accentuated by the MACD and the RSI on the four-hour chart. The former seems to fall deeper into the negative region. In the same way, the MACD line crossing below the signal line is a massive bearish outlook. Another dip is possible with the RSI brushing shoulders with the oversold region before a formidable recovery comes into play.
ETH/USD four-hour chart
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Ripple's technical levels scream sell
Ripple price extended last week's bearish action throughout the weekend and into the new week. Losing support at $0.8 was detrimental to the uptrend, which has suffered significant dents. At the time of writing, XRP teeters at $0.66. The tentative support at $0.7 failed to hold.
Meanwhile, bulls are banking on May's support at $0.65. However, the MACD and the RSI reveal that the downtrend is far from over. In other words, last week's descending triangle breakdown target of $0.5 may be accomplished before Ripple begins another recovery attempt.
XRP/USD four-hour chart
It is worth keeping in mind that the crash in May stopped at $0.65. Therefore, the support here may help bolster Ripple upwards and call more investors into the market. Hence, a conformed break above $0.7 may allow bulls to focus on recovery and not hunting for support.
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