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    Bitcoin Nearing Critical Juncture

    Bitcoin Nearing Critical Juncture – Bitcoin is nearing a critical juncture as its recent sell-off shows few signs of abating.

    The largest digital token is nearing a crucial inflection point as its price inches closer to the lower band limit of the Trading Envelope Indicator. The gauge smooths moving averages to map out higher and lower limits, with a break below the lower band potentially preceding a retreat similar to the one seen on Sept. 24, when the coin fell 12% in one day.

    A bounce off the lower limit, on the other hand, could signal support at that level and, possibly, a rally similar to the one seen on Oct. 25, when bitcoin posted a 15% gain.

    Whichever way it moves, Bitcoin is nearly certain to see one thing: more trading as its price ebbs closer to the lower level limit, the indicator suggests.

    Cryptocurrency prices have been under pressure recently, with bitcoin losing more than 20% over the past month. Other cryptocurrencies have also sold off after Chinese authorities took fresh steps to crack down on the trading of digital assets. Bloomberg News reported last week that at least five local exchanges there have already halted operations.

    “The big narrative is around what’s going on in China,” said Dan Matuszewski, a principal at CMS Holdings. “What you started to see is China cracking down on a lot of the elements of crypto that have been operating inside the country.”

    RELATED: Crytocurrencies Thriving In Hong Kong

    Crypto faithfuls got another dose of bad news after U.S. authorities arrested a member of the Ethereum Foundation for violating international sanctions after he traveled to North Korea to give a cryptocurrency talk.

    Bitcoin fell as much as 7% on Monday to trade around $7,166. The Bloomberg Galaxy Crypto Index, which tracks some of the largest digital assets, lost as much as 5.8%.

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