After Chinese authorities implemented further crackdowns on Monday, Bitcoin price predictions began to tilt towards the bearish end. Chinese state news media said officers from the National Development and Reform Commission acted on a tip-off and raided a warehouse in Inner Mongolia, seizing more than 10,000 crypto mining gadgets.
State media said that the Reform Commission carried out the raid, with the mining site’s power consumption of 1,104kw/h now off the grid. The commission says it would keep tabs on suspiciously high power consumption levels to identify outlawed mining locations.
The actions of the Chinese government continue to erode confidence in the cryptocurrency market. Despite a broad-based recovery, upside moves remain limited to the upside.
The BTC/USD pair is trading 0.94% lower on the day as of writing.
Bitcoin Price Prediction
After hitting intraday highs just above the 44000 mark, Bitcoin price action has faltered. The 42446 support still stands firm but remains under pressure. A breakdown of this level brings 40750 into view.
If the bulls fail to defend this support level, we could see a drop towards 37455 and potentially 35297 if the decline continues.
Bullish recovery only comes about via a break of the recent highs at 52672. This move requires a bounce that takes the BTC/USD pair above 46203, 48380 and the 50000 psychological price mark. This sequence will depend on whether the bulls can crack the cast at 44,000.