Bitcoin drops to a six month low after China announces a crackdown on crypto exchanges

The price of bitcoin slumped down to $6,785 yesterday, which was a six month low for the leading cryptocurrency. However, buyers stepped in soon as the price managed to scrawl above $7,000.

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The price of bitcoin slumped down to a six month low soon after the People’s Bank of China officially announced a crackdown on crypto exchanges in the country. At the time of writing, bitcoin is trading at $7,270. China will adopt measures such as interviews, inspections and bans to tackle cryptocurrency speculation.

 

Bitcoin crawls back up to the $7,000 mark.

After slumping down below $7,000 mark, the price of bitcoin managed to recover in time as it crawled back up $7,000 mark. The last time bitcoin was this low was in May when the bitcoin changed hands at $7,134. Bitcoin needs to hold above the Fibonacci retracement levels around $7270 to initiate a bullish action. Crypto analyst Sawcuhteez tweeted that 4 hours red 9+ dragonfly doji makes this look like a good opportunity to make some profit on shorts.

 

China announces a crackdown on crypto exchanges.

Earlier, the Shanghai branch of People’s Bank of China officially announced a crackdown on crypto exchanges. According to the regulators, cryptocurrency speculation is rising amidst the recent promotion of the blockchain technology in the country. The Chinese regulators would adopt measures such as interviews, inspections, and bans on the monitored crypto exchanges in the country.

Chinese authorities also warned investors not to mix blockchain technology with cryptocurrencies.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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