The Bitcoin price has been trading almost sideways for the past week amid China’s crackdown on cryptocurrencies. The BTC coin was in the green earlier on Wednesday, breaking its two-day losing streak. The coin’s total volume traded in the last 24 hours has declined nearly 6% to $29 billion. Bitcoin’s total market capitalization currently stands lower at $794 billion. Nonetheless, Bitcoin remains the most valued digital asset in the world.
Crypto Sell-Off
The overall crypto market has been under intense pressure for the past few weeks. According to data by CoinMarketCap, the global crypto market capitalization has slipped to $1.87 trillion. In addition, the total crypto market volume over the last 24 hours has dropped 3.47% to $93.54 billion.
China’s renewed crackdown on cryptocurrencies played a major role in the dampening of the overall crypto market sentiment. On Friday last week, the People’s Bank of China (PBOC) rendered all crypto-related activities, including overseas exchanges, illegal.
The Bitcoin price has not been helping the situation either. The coin has been hovering below the crucial level at $45,000 for the past week. Being the crypto market leader, its price performance impacts the general crypto market.
The prospects of a tighter monetary policy in the US have pushed Treasury yields and the dollar higher. This explains why the Bitcoin price has been declining alongside the weakness in the gold price.
Bitcoin Price Technical Analysis
The daily chart shows that the Bitcoin price has been under extreme pressure since September. At the time of writing, it was up 2.83% at $42,189. It is moving below the 25-day and 50-day exponential moving averages. Its Relative Strength Index (RSI) is currently at 42, which is below the 50 average mark.
Therefore, while the BTC price outlook remains negative, the bears will be targeting the next key support at $40,000. On the flip side, a move above the critical level at $45,000 will invalidate this view.
