The bitcoin (BTC) and altcoin prices are turning red again today after the bulls failed to continue the recovery. What are key price zones to keep an eye on and more importantly, what is the possible reason behind the current decline? You can read it in this market update.
Bitcoin (BTC) rejected, now what?
For many, the shock of two days ago will still be good and with the red candles that we now see it will not have gotten much better. The bitcoin price attempted to break through $ 40,000 during the day today. This is also where the centerline of the Bollinger Bands is located on the 4-hour chart.
The rapid recovery above $ 40,000 is therefore not yet happening and the uncertainty remains for the time being. At this point, most eyes will be focused on the price zone at $ 36,500. At the time of writing, the price of bitcoin is $ 37,850 and so the rate is now getting close to this.
The biggest reason for the uncertainty currently seems to be news from China. There has again come out news that the government of the country wants to tackle crypto, and in particular crypto mining. Dutch investor Marc van der Chijs does not call the recent news from China a FUD (fear, uncertainty, doubt). According to him, China is actually closing down miners.
According to van der Chijs, this could cause a price shock in the short term. Still, it would be positive for the long term as many bitcoin miners are located in China. This would make the Bitcoin network too centralized.