Cryptocurrency Market – Why is Bitcoin Dropping and Where is the Future Support?


The digital currency stock has experienced a dramatic plunge in value over the last few days, causing concern among traders and investors. The market is trying to figure out the causes and identify the next support level for crypto assets.

In this post we will look at the factors that caused the recent drop in stock prices. Bitcoin’s Price and probable support points for digital assets.

UK Crypto Regulations: Which British Banks Allow Bitcoin Purchases?

Recent reports show a surge in UK banks clamping down on cryptocurrency acquisitions. As the popularity of Bitcoin grows, several banks have introduced restrictions on their customers’ ability to buy digital assets and other assets.

Among the largest banks in the UK, Nationwide, HSBC and Lloyds Bank have imposed daily limits on buyers or barred purchasing crypto with credit cards. This move follows other banks’ example, which have taken a strict stance on crypto in the past year, with tighter regulations in response to the closure of FTX. This was a major digital assets exchange in November.

Despite the crackdown, some UK banks still allow for the purchase of Bitcoin. These include Barclays, which allows customers to purchase crypto through its banking app and Lloyds Bank, which supports crypto transactions through its mobile banking app. Additionally, some digital banks like Revolut and Monzo offer services where users can purchase and sell cryptocurrency through their mobile apps.

It is hard to predict the impact of these restrictions on the demand for Bitcoin. Investors have to be mindful of any changes to crypto market laws and stay aware of any potential effect on BTC or other digital assets.

ISM Services PMI

According to the most recent Services ISM survey, the index of the nation’s procurement and supply executives remained unchanged at 54.9 in November. This reading is still higher than the previous month, but much lower than its peak of 58.7 in August. The index measures the level of activity in the services sector, which makes up the majority of the US economy.

Analysts believe that the reading could have been affected by the US presidential election as well as the second wave of Covid-19 cases in the US. This data may be a sign of a slowing economy, which could lead to a decrease in investor sentiment.

In the end, investors must be conscious of the potential impact of political and economic news on the crypto markets. Despite the current downturn, BTC may still find support around the $18,000 mark. Investors should keep an eye out for any significant movements, and be prepared to adjust their strategies accordingly.

Recent reports have suggested that the services sector of the economy is experiencing a rise in activity. This is the second month in a row that such an increase has been noted. The Services PMI recorded 55.1%, which implies development in the sector. It has been over two years since there has been a contraction in the services sector.

As the services sector grows, it can have a positive influence on Bitcoin and other digital assets. This is because high economic activity usually results in greater investor confidence and a bigger willingness to take risks and invest in assets such as Bitcoin.

At the moment, Bitcoin is trading at $22,396, and the 24-hour trading volume is $26 billion. Analyzing the BTC/USD pair shows that the symmetric triangle pattern has been broken at $23,250. If the break continues, the price of BTC could fall to the $22,046 support zone. If it keeps decreasing, it can reach the $21,450 mark.

Nevertheless, if the candles close above this level, the bearish engulfing candle pattern can be observed, suggesting a strong bearish bias. The target of $22,800 is for a bounce-off, but it might go even higher, reaching the $23,750 level.

Investors who are interested in buying Bitcoin may want to look into other options that offer higher short-term growth. Analysts have done a detailed analysis of the top 15 digital assets that investors should be aware of in 2023. For more information, click on the link below.

Additionally, Cryptonews offers a cryptocurrency price tracker, allowing users to find the best price to buy and sell digital assets.

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