Bitcoin’s freefall intensifiies again today after China’s central bank warned against engagement of virtural currency transactions by businesses in the country. A document read, “recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
Bitcoin dived through cluster support at 41964 (38.2% retracement of 4000 to 64828 at 41591) today, and hit as low as 29563. It’s now trying to draw support from 28989 support, which is in proximity to 61.8% retracement at 27236. We’d believe that downside potential is limited for now. A corrective recovery should following soon, but there is little prospect of break through 47112 resistance turned support any time soon. We’ll take note of the structure of the recovery to gauge what the next move would be.
