Analysts are turning to technical signals are a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff. The recent downturn has seen the coin lose 40% over the past two months, forming the grim-sounding pattern,
The technical analysis has formed a death cross, with its average price over the last 50 days crossing below its 200-day moving average. This indicator is typically seen as a closely-watched technical measure that could be a hint to downward pressure to come.
According to Matt Maley, chief market strategist for Miller Tabak + Co., the current formation this time around might not be as bearish of a signal given that the 200-day moving average is still rising. But it will be more compelling when it starts to decline.
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Bitcoin fell as much as 11.4% to a two-week low near $31,735 on Monday, after China announced that it summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services. This is the latest sign that China plans to do whatever it takes to close any loopholes left in crypto trading.
Key events this week (Economic Calendar):
Bank of England rate decision (Thursday)
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