Here is why Bitcoin declined below the $60k level
The cryptocurrency market has recorded massive losses over the past few hours as BTC, and other cryptocurrencies dipped.
Bitcoin has dropped below the $60k level for the first time since October as the broader cryptocurrency market retreats. The dip came after a spokesperson for the Chinese National Development and Reform Commission (NDRC) blasted Bitcoin mining during a press conference a few hours ago.
Meng Wei attacked the leading cryptocurrency, stating that Bitcoin mining consumes a lot of energy and produces lots of carbon emissions. As a result, the NDRC, China's top economic planner, said it would launch a full-scale clampdown on crypto mining.
The commission will go after commercial mining and look at state-owned businesses' role in the industry. She added that cryptocurrency production and trade involve many risks and blasted the crypto sector as blind and disorderly.
Following Meng's attack on BTC, the leading cryptocurrency has lost more than 10% of its value over the past 24 hours. BTC was trading above $65k yesterday, but it is now trading at $59,374 per coin.
Key levels to watch
The BTC/USD 4-hour chart has turned bearish after the cryptocurrency's latest performance. At press time, BTC is trading just below the $60k level, losing more than 10% of its value over the past 24 hours.
BTC's MACD has dropped below the neutral zone, indicating a bearish performance in the market, while the RSI of 24 shows that BTC is heavily oversold at the moment. If the current momentum is maintained, then BTC could drop towards the first support level at $56,636.
However, unless there is an extended sell-off in the market, Bitcoin should comfortably stay above the sub-$53k level over the coming hours. On the flip side, the market could recover, and BTC could test the 100-day SMA at $63,471 over the next few hours.
An extended rally from Bitcoin and the broader market could inspire BTC to reach the $65k level again over the coming hours.