Free case of Bitcoin and Ethereum, while China reinforces crypto passages

The central theses

• The People’s Bank of China has declared all trading activities with cryptocurrencies.
• Bitcoin and Ethereum fell at the same time and lost more than 6% of the market value.
• If the declining dynamic accelerates, BTC could strive for USD $ 36,000 and ETH.

Another Chinese cryptocurrency ban has hit the market hard and urges critical support levels. Now investors have to remain vigilant because further sales pressure could lead to considerable losses.

PBOC cracks crypto

The People’s Bank of China (PBOC) announced that it would take further measures to combat cryptocurrencies.

in a public statement said that digital assets disturbed the economic and financial order in the nation. In order to prevent further spread of these risks, the Chinese central bank considered all the services that enable the exchange of fiat and cryptocurrencies as illegal activities.

The new regulation is aimed at every financial institution or every trading platform that enables Chinese citizens and residents to exchange them in cryptocurrencies. In addition, people who exercise such activities and trade with crypto derivatives would be legally pursued.

The latest statements from PBOC shaked the entire cryptocurrency market. Bitcoin and Ethereum in particular broke up by more than 6% and lost most of their recent profits. Now these digital assets are on shaky soil and can be susceptible to further losses.

Bitcoin and Ethereum on thin ice

From a technical point of view, it seems as if the Tom Demark (TD) sequential indicator had felt that a steep retracement was going on. This technical index presented a sales signal in the form of a green nine candle on the 4-hour chart of Bitcoin, which anticipated a correction from one to four candles.

Now that the sweater is underway, only a support barrier could keep a support barrier in chess. The 78.6% Fibonacci retracement level and the setup trend line act as an essential interest zone. These demand walls are $ 42,450 and $ 41,900

Bitcoin has to stay above this support area in order to continue to tend up. Otherwise the sales pressure could rise and increase the prices to $ 39,600 or even $ 36,000.

The TD setup was also bearish when Ethereum rose to $ 3,200. The explanation of the PBOC could have contributed to confirming the pessimistic outlook and suppressing the ETH to $ 2,900. Now the bulls have to do everything in their power to prevent Ethereum from cutting in this level of support.

Another sales pressure that breaks down the support of USD $ 2.900 can lead to significant losses, since the next critical interest ranges are $ 2.650 and $ 2.400.

Investors must pay close attention to the level of support that Bitcoin and Ethereum are currently keeping to determine where these cryptocurrencies go next. Although the market might have reacted quickly to PBOC's explanation, many Chinese investors could be forced to sell their stocks to avoid legal problems.