Bitcoin dropped further below $60,000 to its lowest level in about three weeks amid a broader decline in cryptocurrencies, as concerns about U.S. taxation and China’s continued crackdown swirled.
The largest cryptocurrency was down about 2.5% to $59,000 as of 11:23 a.m. in Hong Kong on Wednesday, retreating for a fourth straight day. Ether fell 3.4% to $4,110 to its lowest level since Oct. 28. The top tokens were all nursing declines of at least 10% over the past seven days.
“This minor pullback creates an attractive risk/reward to buy dips for a push higher in the weeks to come,” according to a Fundstrat technical strategy report Tuesday. “Downside targets should materialize this week,” with support for Bitcoin coming at key levels of $59,862 or $57,371, the report said.
The crypto complex has performed well this year overall, but concerns about tax provisions in U.S. infrastructure legislation and a continued crackdown by China helped sap momentum from what had been a strong run during the past couple of months.
Here are some charts showing what’s going on in crypto now:
50-Day Average
Bitcoin sat near its 50-day moving average during its drop on Tuesday, which offered support just below the round number of $60,000 on Tuesday. The technical indicator is being tested again Wednesday.
![These Are The Crypto Charts To Watch As Bitcoin Drops Below $60,000 1 Bitcoin held near its 50-day moving average as it pulled back](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i1ifGuVWbCDo/v2/pidjEfPlU1QWZop3vfGKsrX.ke8XuWirGYh1PKgEw44kE/620x-1.png)
Hashing It Out
The hash rate, which measures the computing power of the Bitcoin network, has largely recovered since its mid-year swoon as China renewed its crackdown against the crypto industry.
![These Are The Crypto Charts To Watch As Bitcoin Drops Below $60,000 2 Relates to these are the crypto charts to watch as bitcoin drops below $60,000](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ilCJoZrCS80Q/v0/800x-1.png)
Mind the Gap
Ether’s Fibonacci setup, a series of key technical levels, shows it’s at risk for a further slide.
![These Are The Crypto Charts To Watch As Bitcoin Drops Below $60,000 3 Ether key fibonacci support is another 10% lower](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iPKqTU.ZyRQc/v5/pidjEfPlU1QWZop3vfGKsrX.ke8XuWirGYh1PKgEw44kE/620x-1.png)
— With assistance by Akshay Chinchalkar. Read full article at Bloomberg