China Lockdown Triggers Sell-off In Global Markets
Cryptocurrencies slumped Monday amid a round of investor nervousness in global markets spurred by protests in China against Covid restrictions. Protesters outraged by harsh COVID-19 regulations called for China’s strong leader to quit.
This was a rare rebuke as officials in at least eight cities attempted to repress demonstrations Sunday that constituted a direct threat to the ruling Communist Party.
Discontent with President Xi Jinping’s famous zero-COVID policy nearly three years into the pandemic has sparked a surge of public disobedience on the mainland that has not been seen since President Hu Jintao took office a decade ago.
The world’s second-largest economy is feeling the effects of the COVID-19 regulations as well. The protests which began Friday and have extended to cities including the capital, Beijing, and dozens of university campuses are the broadest expression of dissent against the ruling party in decades.
Shanghai protesters calling for Xi’s resignation and an end to one-party rule were dispersed by pepper spray from police, but they returned hours later.
A reporter witnessed protestors who had been arrested being taken away in a bus as police once again dispersed the demonstration.
What Does China Have to Do with the Crypto Drop?
China, as the world’s second-largest economy, has a significant impact on global financial markets; as a result, investors are looking for a safe haven to park their investments.
Stocks and cryptos are not considered safe havens, which is why we are seeing bearish price action today.
However, as China’s situation improves and the end of the protest, we may see a sharp bullish reversal in Bitcoin and other currencies.
Let’s look at Bitcoin price prediction.
Bitcoin Price
The current Bitcoin price is $16,174 and the 24-hour trading volume is $25 billion. During the last 24 hours, the BTC/USD pair has dropped nearly 2.5%, while CoinMarketCap currently ranks first with a live market cap of $310 billion, down from $318 billion yesterday. It has a total supply of 21,000,000 BTC coins and a circulating supply of 19,218,643 BTC coins.
The BTC/USD is trading bearish on Monday after being rejected below the $16,600 resistance level, which was extended by a downward trendline. Bitcoin has formed a descending triangle pattern in the 4-hour timeframe, which typically drives a selling trend.
Bitcoin is currently trading at $16,150 and is heading lower toward an immediate support level of $16,000. According to this, Bitcoin’s next support level is at $15,650, which is extended by a double bottom support level.
Leading technical indicators, such as the RSI and MACD, are in a sell zone, indicating that there is significant selling pressure. The 50-day moving average is extending resistance at $16,450, indicating that the downtrend is likely to continue.
If buyers enter the market, a bullish breakout of the $16,450 level could send Bitcoin to $17,000 in just a few days.
Ethereum Price
The current price of Ethereum is $1,170, with a 24-hour trading volume of $5 billion. In the last 24 hours, Ethereum has lost nearly 4%. CoinMarketCap currently ranks #2, with a live market cap of $143 billion. It has a circulating supply of 122,373,866 ETH coins.
In the 4-hour timeframe, Ethereum has formed “three black crows,” indicating a strong selling trend. The ETH/USD has broken through an upward channel that had been supporting the pair at $1,210 and is now acting as resistance.
At $1,175, Ethereum has crossed below the 50-day moving average line, signaling a strong sell signal. On the downside, Ethereum’s immediate support is at $1,150, which was extended by a previously placed low on November 23.
The RSI and MACD indicators are also in a sell zone, suggesting that ETH may target the $1,115 support level.
On the upside, the major resistance level for ETH remains $1,185, and a break above this could take it to the $1,235 level.
Compiled by Coinbold
