Bitcoin Trending Lower on China Crackdown, Support at $ 36K- $ 40K

Bitcoin (BTC) sellers were active during Asian business hours after China’s central bank declared crypto-related business illegal. BTC fell below $ 42,000 and is down about 3% in the last 24 hours. Initial support is seen at $ 40,000, which could stabilize the pullback.

A series of lower price highs from the $ 50,000 resistance level reflects a slowdown in bullish momentum this month. The medium-term uptrend has weakened, although short-term buyers could defend lower support levels over the weekend.

  • The relative strength index (RSI) on the daily chart is rising from last week’s oversold levels, which could limit additional selling.
  • The 100-day moving average at $ 40,000 could provide short-term support. If it breaks down, the next support level is seen around $ 36,000, which is the middle of a four-month price range.
  • Resistance remains strong above $ 46,000 as buyers continue to profit.

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