Bitcoin in Freefall Towards the Closest Psychological Support

Bitcoin's tumble was bolstered today following the decision of China's central bank to declare all cryptocurrency activities illegal. The price action is currently testing the 23.6 per cent Fibonacci retracement level at 41764.04. A potential pullback could ensue to the 38.2 per cent Fibonacci, which is about to be crossed by the 50-day MA (in green) and the 100-day MA (in blue).

Conversely, a decisive breakdown below the 23.6 per cent Fibonacci would likely be followed by a dropdown to the psychologically significant support level at 40000.00.