The People’s Bank of China (PBoC) has just updated its regulatory protocols, encouraging investors not to confuse or mix blockchain technology with virtual currencies such as Bitcoin.
This announcement was made as the PBoC is being rumoured to be on its way to launching its own cryptocurrency, while conducting high profile raids on several offices of suspected crypto exchange offices in Shenzhen and Shanghai. The PBoC, through its Shanghai Financial Stability Joint Conference Office, will collaborate with the Shanghai Headquarters of the bank to constantly monitor and stop any virtual currency related businesses within its jurisdictions.
The news caused BTCUSD to fall steeply in Thursday’s trading; a selloff which has extended today and threatens to take BTCUSD below $7000 for the first time since the beginning of 2019.
Don’t miss a beat! Follow us on Telegram and Twitter.
Technical Outlook for BTCUSD
BTCUSD is presently testing long-term support levels at just above 7060. A break below this level opens the door to support areas at 6494 and 5820 (June/July 2018 lows).
However, such steep plunges of price also present opportunities to buy at cheaper prices for the future. There are reports filtering in of large scale buying of stablecoins linked to the US Dollar being acquired, possibly in preparation to snap up cheaper Bitcoins against the future. Therefore, price recovery could give BTCUSD an opportunity to retest the June 3 and September 20 lows at 7430, or even the July 2018 and Sep 30 2019 highs of 8550. Further upside takes the pair to 9500 or even the previous October 2019 high of 10450.More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.