Risk assets, especially equities, moved lower on Friday after Fed's Bullard hit a hawkish note and said that taper discussions have already begun. Cryptocurrencies have also taken a hit and declines continue at the beginning of a new week. Bitcoin slumped below the $33,000 mark and is approaching a lower limit of its recent trading range. Ethereum, Litecoin and Ripple are trading around 10% lower on the day. Another factor that may contribute towards lacklustre performance of cryptocurrencies recently is Chinese crackdown on cryptocurrency miners. News of more strict laws or even bans from another province surface almost on a daily basis.
Taking a look at BITCOIN at D1 interval, we can see that the latest upward move has been halted at the $40,000 area that serves as the upper limit of a trading range and is marked with 38.2% retracement of the latest major downward impulse. Coin is testing the lower limit of the range today at $32,000 and in case it breaks lower, a way towards the next support at $30,000 mark will be left open.
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Source: xStation5
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