Bitcoin Slumps Following Ban from the Agricultural Bank of China
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The third-largest bank in China has published a statement detailing a complete ban prohibiting its customers from facilitating Bitcoin (BTC) and cryptocurrency transactions. Notably, the Agricultural Bank of China is also one of the largest banks in the world.
The bank noted that customers’ accounts would get immediately suspended on the discovery that it facilitated Bitcoin or cryptocurrency transactions. The bank also revealed that defaulting or suspicious transactions will get reported to the relevant authorities swiftly.
This new development aligns with the Chinese government’s anti-crypto stance and its efforts to clamp down on decentralized crypto use in the country. While China’s official ban on BTC within its borders has endured for about a decade now, the government likes to reiterate its position periodically.
Meanwhile, many voices in the cryptocurrency community argue that China’s recent overt efforts to crack down on cryptocurrency activities in the country come in anticipation of its digital yuan.
As expected, the announcement, which came yesterday, has left a massive dent in the price of Bitcoin and the crypto industry as a whole. BTC has since plummeted by over $4k following the announcement. The altcoin sector had it worse, with double-digit drops scattered around the market.
Notably, the total crypto market valuation is now at $1.2 trillion after dropping by over 7% in the past 24 hours.
Key Bitcoin Levels to Watch — June 22
While the dominant sentiment across the market is bearish, BTC might have an opportunity to turn things around a bit. The benchmark cryptocurrency has touched the $31k pivot line, which has strongly repelled the last two bear waves.
Additionally, the market is likely overheating following the massive plunge, indicating that BTC could record a bullish correction soon. These technical factors suggest that we could see a decent bullish rally to the $34k axis over the coming hours.
Nonetheless, bulls need to exercise moderation in placing longs today, as the benchmark cryptocurrency is not out of the woods yet.
Meanwhile, our resistance levels are at $32,000, $33,000, and $33,750, and our key support levels are at $31,000, $30,000, and $29,000.
Total Market Capitalization: $1.27 trillion
Bitcoin Market Capitalization: $592.6 billion
Bitcoin Dominance: 46.7%
Market Rank: #1
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