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Bitcoin, Ethereum Free Fall as China Strengthens Crypto Crackdown

Key Takeaways The People’s Bank of China has deemed all cryptocurrency trading activities illegal. Bitcoin and Ethereum fell in tandem, losing more than 6% in market value. If the bearish momentum accelerates, BTC could target $36,000 and ETH $2,400. Share this article

Another Chinese cryptocurrency ban has hit the market hard, pushing Bitcoin and Ethereum toward critical support levels. Now, investors must remain vigilant as further selling pressure could lead to more considerable losses. 

PBOC Cracks Down on Crypto

The People’s Bank of China (PBOC) announced that it would be taking further measures to crack down on cryptocurrencies. 

In a public statement, the PBOC said that digital assets had disrupted economic and financial order, increasing illegal and criminal activities in the nation. To prevent further propagation of these risks, the Chinese central bank deemed all services enabling the exchange of fiat currencies and cryptocurrencies as illegal activities.

The new regulation targets any financial institution or trading platform that allows Chinese citizens and residents to convert yuan into cryptocurrencies. Additionally, individuals who engage in such activities and crypto derivatives trading would be subject to legal prosecution. 

PBOC’s recent remarks have shaken the entire cryptocurrency market. In particular, Bitcoin and Ethereum plummeted by more than 6%, losing most of their recent gains. Now, these digital assets stand on shaky ground and may be prone to further losses. 

Bitcoin and Ethereum On Thin Ice

From a technical perspective, it appears like the Tom DeMark (TD) Sequential indicator sensed that a steep retracement was underway. This technical index presented a sell signal in the form of a green nine candlestick on Bitcoin’s 4-hour chart, anticipating a one to four candlesticks correction. 

Now that the pullback is underway, only one support barrier might keep falling prices at bay. The 78.6% ...

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