It’s common knowledge that China can drag down the crypto market and the Huobi Cryptocurrency Exchange is feeling the full effect. Huobi Exchange halted futures trading services presumably due to regulatory pressure mounting from China. Noted in a Coinmarketcap report, Huobi began blocking its Chinese customers from being able to access some of their services.
It has been reported that China’s State Council (CSC), the country’s central governing body, published comments from a meeting with its Financial Development Committee. There comments stated that they were cracking down on Bitcoin mining and trading activities. By taking this action now, the CSC believes “its preventing financial risk” in the crypto markets.
Huobi responded with a statement saying that “its limitations would allow the company to focus on the expansion of there overseas presence.” Huobi Exchange has also suspended the sales of its mining products.
Crypto traders are saying, because of China’s Bitcoin mining issues, it looks as though the crypto market has hit the point of capitulation, and things could get much worse.
How is the market responding to the news? Bitcoin is consolidating above the $30,000 support after falling to the low of $29,563. Presently, Bitcoin price action is characterized by small body candlesticks called Doji and Spinning tops. These candlesticks are describing that buyers and sellers are undecided about the direction of the market. For the past week, BTC/USD faced rejection at $51,000 which completed the bearish onslaught of Bitcoin. Meanwhile, from the Fibonacci tool, the major retracement candle body tested the 50% Fibonacci retracement level.
