Cryptocurrencies are taking a hit today with some coins dropping over 7% on the day. The move can be reasoned with two events. The first one is the signing of a new $550 billion infrastructure bill by US President Joe Biden. The bill includes new requirements for reporting cryptocurrency holdings for tax purposes that may make crypto investments somewhat less appealing to investors. The second reason behind today’s move is news from China. The Chinese National Development and Reform Commission (NDRC) announced that it is exploring options to further crack down on cryptocurrency mining in the country. Among options explored by NDRC is levying punitive power prices on companies and households that engage in digital currency mining.
BITCOINCASH is one of the worst performing cryptos today. Taking a look at the chart at D1 interval, we can see that the coin continues the pullback launched after a failed attempt of breaking above the mid-term resistance zone at $730. BITCOINCASH dropped below 200-session moving average (purple line) and is approaching a $600 swing area, marked with previous price reactions and 50-period moving average. Note that the short-term upward trendline can be found slightly below the $600 area. Breaking below this mix of technical supports could see downward move on the coin accelerate. In such a scenario, the key support to watch can be found in the $380 area.